Corporate Fleets Going Electric by 2035

What the problem is
Corporate fleets (cars and vans owned by large companies) make up about 60 % of new car registrations and 90 % of new van registrations in the EU. They drive more kilometres than private cars, so they emit more fuel‑related pollution. Today only a small share of these vehicles are zero‑ or low‑emission (ZEV). This limits the EU’s ability to cut transport emissions, keeps fuel costs high for companies, and slows the growth of the second‑hand market for clean vehicles.

How the problem is being solved
The European Parliament and Council will adopt a new Regulation that:

• Sets national targets for the share of zero‑ and low‑emission vehicles in new corporate car and van registrations by large companies (≥ 250 employees or €50 m turnover).
• From 2030 the combined share of zero‑ and low‑emission cars must be at least the country‑specific target (e.g., Austria 90 %, Belgium 90 %, France 69 %).
• The minimum share of zero‑emission cars must be at least the lower target (e.g., Austria 58 %, Belgium 58 %, France 45 %).
• From 2035 the combined share rises to 95 % in all Member States, with the zero‑emission minimum also 95 % (except for some countries where the minimum is lower, e.g., France 80 %).
• Requires Member States to phase out financial incentives for non‑ZEV corporate vehicles and to give incentives only for ZEV or low‑emission vehicles.
• Gives the Commission the power to set rules for a vehicle to be considered “made in the EU” so that EU suppliers can benefit from the demand signal.
• Excludes lorries from the scope (they will be covered by a future revision of heavy‑vehicle CO₂ standards).
• Keeps the administrative burden low: Member States will report data that already exist in their vehicle registers; no new EU budget line is needed.

What changes as a result of this document

• Corporate fleets will be pushed to buy or lease more ZEVs, raising the share of clean vehicles in the fleet and in the second‑hand market.
• EU automotive industry will receive a clearer, EU‑wide demand signal, encouraging investment in electric‑vehicle production and charging infrastructure.
• Companies will see lower fuel and operating costs over time, while the EU will cut transport CO₂ emissions by up to 43 Mt between 2030 and 2050.
• Member States will report annually on new corporate registrations and ZEV shares; the Commission will review the Regulation in 2032 and may set new targets for 2035‑2050.
• No new EU spending is required; the Regulation relies on existing administrative and IT systems.

Other important information

• The Regulation is based on Article 192(1) TFEU (environmental objectives) and follows the principle of subsidiarity and proportionality.
• Stakeholder consultations (268 participants, 111 written contributions) and an impact assessment found that the chosen policy option (PO1) gives the best balance of benefits and costs.
• The Regulation is consistent with other EU rules: CO₂ performance standards for light‑duty vehicles (Regulation 2023/851), the Clean Vehicles Directive, the Alternative Fuels Infrastructure Regulation, the EU Emissions Trading System, and the EU Climate Law.
• Digital reporting will use existing data formats; no new data collection is needed.
• The Regulation will enter into force 20 days after publication in the Official Journal.

This Regulation is the EU’s first binding, EU‑level demand‑side measure to accelerate the electrification of corporate fleets and support the transition to a climate‑neutral transport sector.