Corporate Fleets and the EU Automotive Industrial Action Plan

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Final Up to date on: sixth February 2025, 01:33 am

How the European Fee can enhance demand for made-in-Europe EVs

The European automotive trade is within the midst of a historic transition shifting to electrical car (EV) manufacturing. New challenges come up, corresponding to Chinese language competitors or making certain a predictable demand. To construct a resilient automotive trade, the EU must introduce measures that strengthen demand for electrical vehicles which are produced in Europe.

Firm vehicles — which characterize 60% of latest automobiles — have massive potential to spice up EV demand. Though firm automotive drivers obtain massive tax breaks when leasing an EV, this market isn’t outpacing the non-public section. In Europe’s two greatest markets — Germany and France — the company market is even lagging behind.

The European Fee has now introduced it would come ahead with a legislative proposal to speed up the electrification of company fleets. An EU electrification goal for big firm automotive fleets would assure a market demand for European carmakers of greater than 2.1 million EVs in 2030. This may ship on common half of the EVs they should promote to fulfill their 2030 CO₂ emission requirements and keep away from paying penalties.

Key findings:

It will specifically profit EU carmakers. Company vehicles are Europe’s greatest automotive market: Right this moment nearly 60% of latest vehicles within the EU are registered by corporations. European carmakers — who’ve headquarters within the EU — have a stronger presence on this market than their opponents. On common, 62% of their gross sales go into this section in comparison with solely 49% for non-EU carmakers. Furthermore, information additionally exhibits that when shopping for electrical vehicles, corporations are extra loyal to EU manufacturers than non-public shoppers.
Advantages for EU carmakers may very well be even greater if the European Fee develops a car eco-score mirroring the French ecobonus. This EU eco-score ought to turn out to be a ranking system that rewards the manufacturing of automobiles utilizing low-carbon supplies, whereas selling vitality and useful resource effectivity. In consequence, automobiles made in Europe could be higher rated due to cleaner vitality used within the manufacturing course of.
Given the a lot shorter possession interval of company vehicles (three to 4 years), the electrification of those vehicles will quickly speed up the availability of extra reasonably priced second-hand ZEVs for personal patrons. By requiring massive corporations to solely register electrical automobiles from 2030 (see part 2), practically seven million households can have entry to extra reasonably priced used EVs by 2035.

Coverage suggestions:

As a part of the Clear Industrial Deal and the upcoming Automotive Industrial Motion Plan, the European Fee ought to announce a regulation on Greening Company Fleets. Directives take too lengthy to implement and won’t present the well timed market sign and predictable demand that we want already within the subsequent years. A proposal needs to be tabled newest in Q1 2026.
This Regulation may be completed easy and efficient: The European Fee ought to set a binding 100% ZEV goal for big company fleets (new vehicles as of 2030). The market information in France present that fleets with 100 vehicles or extra could be a good threshold placing a steadiness between effectivity (lower than 1% of holdings) and effectiveness (21% of all new registrations). The upcoming affect evaluation ought to present extra granular information to evaluate the acceptable threshold.
The European Fee ought to announce a car “eco-score” initiative as a part of its Motion Plan for the automotive trade, and prioritise the event of the methodology in 2025–2026. This EU eco-score needs to be utilized to an upcoming Greening Company Fleets Legislation, for instance by introducing a sub-target for company vehicles that want to fulfill a sure EU eco-score degree.
This EU Greening Company Fleets Regulation ought to transcend vehicles and likewise set ZEV targets for big shippers and freight forwarders to spice up demand for zero emission vans and vehicles. Shippers and freight forwarders weren’t a part of the general public session and may subsequently be included within the upcoming EC affect evaluation.

To search out out extra, download the briefing.

First printed on T&E website.