Incentives, not mandates, key to boosting EU corporate EV uptake

The European Automobile Manufacturers’ Association (ACEA) has issued a strong call for coordinated, incentive-driven strategies across the EU to accelerate the uptake of zero-emission vehicles (ZEVs), especially in the corporate sector which accounts for 60% of all new car registrations and virtually all commercial vehicles in Europe.

Despite increasing regulatory pressure and growing awareness of climate goals, battery-electric vehicles (BEVs) still made up just 15% of total car registrations across the EU in the first half of 2025. For vans and trucks, the numbers were even lower – 8.5% and 3.5% respectively -highlighting a significant gap between targets and real-world adoption.

According to ACEA, this sluggish demand is being driven by three core factors:

• Higher total cost of ownership, exacerbated by expensive public charging;
• Insufficient charging infrastructure in key markets;
• And a weak resale market, which creates uncertainty around residual values.

While some policymakers are considering stricter mandates to boost ZEV adoption, ACEA argues that targeted incentives – not “knee-jerk” regulations – are the most effective path forward.

“Stimulating the purchase of zero-emission vehicles is a powerful lever to boost demand and meet CO2 reduction targets,” the association stated. “But choosing the most efficient instrument will determine the impact and success, and these will only work when the enabling infrastructure and other preconditions are in place.”

Countries like Norway and Belgium were cited as clear examples of what can be achieved without mandates. In Norway, 90% of new corporate car registrations are already zero-emission, thanks to a mix of fiscal incentives, toll exemptions, preferential parking, and access to bus lanes. Belgium is close behind, with 80% corporate ZEV uptake driven by tax breaks and infrastructure support.

Yet despite these success stories, only 19 EU member states currently have dedicated fiscal schemes to green corporate fleets, leaving a majority of countries without a clear strategy.

ACEA is now urging EU institutions to focus on:

• Non-legislative coordination of national fiscal incentives for cars and vans;
• Public procurement preferences for zero-emission commercial vehicles;
• Incentives for shippers and logistics buyers to increase low-emission transport;
• And targeted support for transport operators, including CO₂-based road tolls and infrastructure development.

Corporate buyers, who dominate vehicle purchases, need compelling economic reasons to go green, emphasised the ACEA. If EU wants to hit CO₂ targets and stimulate market transformation, roadblocks must be removed and put the right tools in the right hands.

As the EU pushes ahead with its Green Deal and Fit for 55 targets, the next few years will be pivotal. ACEA’s message is clear: the market can deliver on zero-emission goals, if the strategy is smart, coordinated, and grounded in economic reality.