Summary
- EU needs to introduce measures to boost demand for electric cars made in Europe
- Company cars represent 60% of new vehicles and have the potential to boost EV demand
- The European Commission plans to accelerate the electrification of corporate fleets with an EU target
- EU carmakers would benefit from these measures, especially with the development of an eco-score
- Policy recommendations include setting a binding 100% ZEV target for large corporate fleets and introducing a vehicle eco-score initiative
Article
The European Commission is considering measures to boost demand for electric vehicles produced in Europe to support the transition to electric vehicle (EV) manufacturing. Currently, the corporate car market, which represents 60% of new vehicles in Europe, has the potential to significantly increase EV demand. Despite tax breaks for leasing EVs, the corporate market is lagging behind the private sector in terms of EV adoption in countries like Germany and France.
To accelerate the electrification of corporate fleets, the European Commission plans to introduce a legislative proposal that would set an EU electrification target for large company car fleets. This target could lead to a market demand for more than 2.1 million EVs in 2030, helping European carmakers meet their CO₂ emission standards and avoid penalties. By focusing on corporate fleets, which have a shorter ownership period, there will be a faster supply of affordable second-hand zero-emission vehicles (ZEVs) for private buyers in the future.
European carmakers stand to benefit from these measures as they have a stronger presence in the corporate car market compared to non-EU carmakers. Additionally, a proposed vehicle eco-score system could further incentivize the production of low-carbon vehicles in Europe by rewarding energy and resource efficiency. This system would ensure that vehicles manufactured in Europe receive better ratings due to the use of cleaner energy in the production process.
Policy recommendations include the introduction of a Regulation on Greening Corporate Fleets as part of the Clean Industrial Deal and the upcoming Automotive Industrial Action Plan. This regulation would set a binding 100% zero-emission vehicle (ZEV) target for large corporate fleets starting in 2030. The development of a vehicle eco-score initiative should also be prioritized to promote sustainable vehicle manufacturing practices and incentivize the adoption of EVs in the corporate sector.
In addition to targeting cars, the EU Greening Corporate Fleets Regulation could also set ZEV targets for large shippers and freight forwarders to increase demand for zero-emission vans and trucks. This inclusive approach aims to align various sectors with the transition to cleaner transportation options and support the EU’s efforts to reduce carbon emissions. Overall, these proposed measures would not only benefit European carmakers but also accelerate the adoption of electric vehicles in the corporate sector, leading to a more sustainable automotive industry in Europe.
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