Corporate Fleets Going Electric

What the document is about
The European Commission proposes a new EU Regulation that will push large companies to buy more zero‑emission and low‑emission cars and vans for their corporate fleets. The goal is to cut road‑transport emissions, speed up the availability of electric vehicles on the second‑hand market and support the EU automotive industry.

1. What problem is being addressed?

• Corporate fleets account for about 60 % of new car registrations and 90 % of new van registrations in the EU.
• These vehicles travel far more miles than private cars, so they emit a large share of the EU’s 22.6 % of greenhouse‑gas emissions and 35 % of NOx.
• The share of zero‑emission vehicles (ZEV) in corporate fleets is still low – roughly 17 % of new corporate cars, 8 % of new vans, and 3.7 % of new lorries (first half 2025).
• Because corporate vehicles are sold quickly, a higher ZEV share would also make electric cars cheaper and more available for private buyers.

2. How is the problem being solved?

• National targets: From 2030, each Member State must set a minimum share of ZEV and a combined share of zero‑ and low‑emission vehicles in new corporate car and van registrations by large companies (≥ 250 employees or € 50 million turnover).
• Example targets (2030):
• Cars – 90 % combined, 58 % ZEV (Austria, Belgium, Denmark, etc.).
• Vans – 52 % combined, 47 % ZEV (Austria, Belgium, Denmark, etc.).
• Higher ambition levels (2035) raise the combined share to 95 % for both cars and vans in most countries.
• Financial support:
• From two years before the 2030 target date, Member States must stop giving subsidies for non‑ZEV corporate cars and vans.
• Subsidies may only be given for vehicles that are “made in the EU”.
• Flexibility for Member States:
• Each country can choose the measures that best fit its market – tax incentives, favourable road‑charging, infrastructure investment, etc.
• Exclusion of lorries: The Regulation does not cover heavy‑duty vehicles; those will be addressed later when CO₂ standards for lorries are revised.
• Monitoring and reporting:
• Member States report annually the number of new corporate cars and vans registered by large companies and the share of ZEV.
• The Commission reviews the Regulation in 2032 and may propose further changes.

3. What changes result from this document?

• Clear EU‑level demand signal for zero‑emission vehicles in corporate fleets, complementing existing supply‑side CO₂ standards for cars and vans.
• Reduced fragmentation of national incentives – all large companies face the same EU target, while national measures can still be tailored.
• Increased availability of electric vehicles on the second‑hand market, helping households and SMEs switch to cleaner cars.
• Support for EU automotive industry by creating a predictable demand for EU‑made components and batteries.
• No direct EU budget impact – the Regulation relies on existing administrative systems and data already collected for vehicle registration and CO₂ monitoring.

4. Other important information

This Regulation aims to make the EU a leader in clean corporate mobility, reduce transport emissions, and strengthen the competitiveness of the European automotive sector.