Corporate fleets drive EV uptake in Europe

Corporate fleets across Europe are continuing to lead the transition to electric vehicles (EVs), even as adoption remains uneven between countries and segments, according to findings from the Arval Mobility Observatory Barometer 2026.

In the fourth quarter of 2025, battery electric vehicles (BEVs) accounted for 28.3% of new corporate passenger car registrations across Europe’s eight largest markets*, compared with just 19.4% among private buyers. The figures underline the growing importance of company fleets as a key driver of electrification.

The stronger uptake among corporates is largely attributed to evolving company car policies, with many businesses now positioning BEVs as the default option for drivers. Fiscal incentives targeted at company cars have also played a crucial role in accelerating adoption.

This dynamic is particularly evident in countries such as Belgium, the Netherlands and the United Kingdom, where tax advantages for company vehicles continue to give corporate fleets a clear edge over private buyers in switching to electric.

In contrast, France has seen the gap narrow as private adoption accelerated in 2025, supported by the rollout of social leasing schemes that make EVs more accessible to individuals.

Across Europe, the broader market context remains mixed. After a dip in 2024, BEV registrations rebounded in 2025 to reach 1.88 million new passenger cars. While upfront costs remain higher than for internal combustion engine vehicles, lower running and maintenance expenses are improving the overall cost equation for EVs.

However, challenges remain, particularly around residual values, with faster depreciation of EVs continuing to affect affordability and long-term confidence in the market.

Corporate fleets are expected to remain central to future growth, driven not only by financial incentives but also by sustainability targets and structured fleet policies that prioritise total cost of ownership over upfront price.

At a country level, disparities are clear. The Netherlands remains one of Europe’s most advanced markets, with BEVs accounting for 68% of corporate registrations in late 2025, double the rate seen among private buyers. Meanwhile, Italy presents a contrasting picture, where private adoption overtook corporate uptake, largely due to incentives focused on individual consumers.

Looking ahead, the pace of electrification across Europe is likely to depend on a combination of EU regulations and national tax policies, both of which continue to shape demand in corporate and private segments.

While progress is steady overall, the transition to electric mobility across Europe remains uneven, highlighting the critical role of policy consistency and targeted incentives in sustaining momentum.

*Top 8 countries in terms of registrations (around 80% of the market in Europe) -Belgium, France, Germany, Italy, the Netherlands, United Kingdom, Spain and Poland.