EU targets corporate fleets to accelerate clean transport

The European Commission’s Automotive Package, released yesterday, places corporate fleets at the centre of its strategy to accelerate the transition to clean mobility, proposing binding national targets to increase the uptake of zero- and low-emission vehicles by large companies across the EU.

Under the proposal, Member States would be required to meet mandatory targets for greening corporate vehicles, reflecting the Commission’s view that company cars and vans can play a decisive role in cutting emissions. Corporate vehicles typically cover far higher annual mileages than privately owned cars, meaning faster electrification could deliver disproportionately large emissions reductions. The Commission also argues that increasing the number of zero- and low-emission vehicles in corporate fleets will boost supply in both first- and second-hand markets, ultimately benefiting consumers.

However, the plans have drawn criticism from parts of the industry, particularly the leasing and rental sector, which accounts for a significant share of corporate vehicle financing.

Leaseurope, which represents Europe’s leasing and vehicle rental industries, described the proposal as “the wrong instrument for the wrong target”. Its members accounted for more than one in every two vehicles sold in the European market last year and have been at the forefront of corporate electrification, registering around 60% of all new battery electric vehicles (BEVs) in Europe over the past three years.

Leaseurope said it was still analysing the full detail of the Commission’s proposal but fundamentally questioned the use of binding national targets across all 27 Member States. The organisation argues that what companies need to accelerate adoption of zero- and low-emission vehicles are stronger incentive frameworks, faster deployment of enabling conditions such as charging infrastructure, and measures to address the residual value crisis affecting used electric vehicles.

“Despite overwhelming evidence from the fastest EU BEV uptake markets which all have a system of incentives allied to sustained investment in the enabling conditions, the Commission has proposed binding National Targets for vehicle uptake. We believe this is the wrong instrument for the wrong target.”

Knubben warned that while the Commission intends to focus the regulation on Europe’s largest companies, the practical effect could be to restrict financing options for businesses of all sizes, including small and medium-sized enterprises, as well as individuals who depend on leasing and rental providers. He also argued that the targets risk exacerbating existing pressures on manufacturers without directly incentivising further BEV adoption.

According to Leaseurope, the main barriers to faster corporate uptake of electric vehicles remain the total cost of ownership of fleets, the lack of sufficient charging infrastructure for diverse corporate use cases, and grid capacity and permitting constraints, particularly for large-scale deployments at company sites. The organisation also criticised the Commission’s plan to base targets partly on GDP-per-capita ratios, saying this fails to reflect real-world infrastructure and market conditions.

“We fully support faster BEV uptake across all EU27 markets,” Knubben added. “We urge the co-legislators to adopt a more balanced and effective approach, focused on what will really drive faster uptake: accelerating the enabling conditions for companies, including developing charging infrastructure, investing in improved grid capacity, and supporting the market for second-hand ZEVs, which has been a blind spot for the policymakers for many years now.”

The Commission’s proposal on corporate fleet greening will now be scrutinised by the European Parliament and Member States, where the balance between regulatory targets and market-based incentives is likely to be a key point of debate in the months ahead.