Industry groups urge EU to rethink Clean Corporate Vehicles Regulation

A coalition of leading European leasing, finance, transport and SME organisations has called on EU policymakers to replace proposed binding corporate fleet electrification targets with a more flexible, incentive-led framework, warning that the current approach risks undermining business competitiveness and slowing the transition to cleaner vehicles.

In a joint statement, industry bodies including Leaseurope, SMEunited, UETR, Eurofinas, IRU and FIGIEFA urged co-legislators to adopt a more pragmatic approach to the European Commission’s proposed Clean Corporate Vehicles Regulation.

The organisations said they fully support the transition to zero- and low-emission vehicles across Europe but argued that decarbonisation policies must recognise the differing operational requirements, infrastructure readiness and investment capacities that exist across EU member states.

The coalition represents a broad cross-section of Europe’s mobility ecosystem, from leasing companies and vehicle finance providers to road transport operators, logistics businesses, automotive aftermarket distributors and SMEs. Leaseurope represents Europe’s leasing and vehicle rental industries, which accounted for more than half of all vehicles sold in Europe in 2024 and represented 60% of newly registered battery electric vehicles over the past three years. Around 70% of Leaseurope members’ business customers are SMEs.

The groups argue that the Commission’s proposal places too much emphasis on binding national targets and fails to address the practical barriers preventing faster electric vehicle adoption. They contend that countries with the strongest battery electric vehicle uptake have achieved their progress through incentives, investment in charging infrastructure and stable regulatory frameworks rather than mandated targets.

The statement also warns of unintended consequences for SMEs, which often rely on leasing and finance solutions to access newer and cleaner vehicles. Many smaller businesses continue to face operational challenges linked to charging infrastructure availability, payload requirements and long-distance operating needs, particularly in rural areas. The organisations argue that binding targets alone will not resolve these issues and could ultimately restrict vehicle choice and affordability.

A further concern highlighted by the coalition is the decline in electric vehicle residual values across European markets since 2023. The groups say falling residual values are increasing the cost of financing new electric vehicles and creating uncertainty for fleet operators and finance providers. They warn that without a healthy used electric vehicle market, SMEs could face reduced access to affordable zero-emission mobility solutions.

Instead of mandatory targets, the organisations are calling for an incentive-led framework built around six interconnected pillars. These include accelerated investment in charging infrastructure, technology-neutral fleet policies, targeted support for SME fleet transition, measures to strengthen the used EV market, greater coordination and guidance from the European Commission, and harmonised urban mobility policies that reflect the needs of smaller businesses.

The coalition said such an approach would better support the transition to cleaner corporate fleets while maintaining competitiveness, preserving consumer choice and ensuring that businesses of all sizes can participate in Europe’s decarbonisation journey.