Corporate fleets are where the rubber meets the road. They represent nearly 60% of all new car registrations in Europe, drive twice as much as private cars, and typically re-enter the market within just three to five years. That makes corporate fleets one of the most powerful levers to decarbonise transport quickly, while creating a steady supply of affordable second-hand EVs for households.
Last week, European Commission President Ursula von der Leyen brought industry leaders together for the third Automotive Dialogue, underlining how central transport is to Europe’s competitiveness. Now, with the Commission preparing a proposal on clean corporate fleets for the end of this year, the spotlight on this sector has never been brighter. In light of these upcoming debates, Eurelectric has updated its position paper on corporate fleets.
This week’s Friday Feature picks up the thread and takes a closer look at Eurelectric’s updated position paper. It investigates why fleets are the natural starting point, explains what the EU should put on the table, and reflects on how smart fiscal rules can make electrification stick.
Why fleets first
Six out of ten new cars in Europe leave the showroom under a company name and head straight into heavy use. Private cars average around 15,000 kilometres a year; corporate vehicles (cars, trucks, vans etc) rack up closer to 30,000 on average. And unlike households, which typically own two cars, companies own and operate fleets – multiplying the impact of their purchases.
Because they are looking for the best business case, companies usually don’t buy cars on emotion but on numbers. Their purchase decisions are made based on the total-cost of ownership, not just the price tag of the vehicles. Lower running costs, less maintenance and an expanding charging network make BEVs the rational, competitive choice for fleets. Add smart charging and vehicle-to-grid (V2G) services, and they become more than mobility, they become flexible assets for the power system itself.
But the case doesn’t stop at corporations. For households, fleet electrification is a gateway. Company cars have short lifespans – usually three to five years. In a market where over 70% of used cars are bought by private households, this rapid turnover means electrified fleets won’t just clean up the front end of the market. They will hopefully soon also push thousands of affordable EVs into driveways across Europe, lowering the entry barrier for families. One fleet manager’s decision today can become a cleaner, cheaper car for someone else tomorrow.
And the logic extends further. For Europe’s industry, fleets are a strategic advantage. European carmakers dominate this segment, with 62% of their sales going into fleets compared to 49% for non-EU brands. Making fleets the spearhead of electrification therefore delivers a double dividend: it accelerates Europe’s decarbonisation while reinforcing its industrial base at a moment when reindustrialisation and strategic autonomy are top of the agenda.
What the EU must do
High mileage, short lifetimes, predictable use. Corporate fleets are the low-hanging fruit of transport decarbonisation. And given all this, Eurelectric’s call is clear: the Commission must table a Regulation, not a Directive. Only a Regulation provides the uniform rules and legal certainty businesses need.
That regulation should deliver on three priorities:
- First binding targets. From 2030 onwards, all newly purchased corporate cars should be zero-emission, with calibrated targets for vans and heavy-duty vehicles owned by large fleet operators. A threshold of around 100 vehicles could provide a fair benchmark.
- Second smarter choices. An EU-level Eco Score should reward vehicles that meet EU sustainability production standards in order to favour European-made BEVs. This is more than environmental housekeeping; it is industrial policy in action.
- Third system value. The initiative should favour vehicles with bi-directional charging capabilities, so that they strengthen the grid, decarbonise mobility and provide an even greater business case for the fleet owner. With predictable usage patterns, depots could become a backbone for V2G deployment, balancing the system and unlocking flexibility.
Enforcement of any binding provisions however should not be punitive for its own sake. If penalties are applied, revenues should flow back into the transition – supporting demand for EVs through measures like social leasing or ecological bonuses. Every euro raised should accelerate uptake, not slow it.
But targets and enforcement alone won’t do the job. While EU-level ZEV targets are essential, fiscal policy remains one of the most effective tools to accelerate fleet electrification. That is why the legislative proposal must place strong emphasis on national tax measures, advising Member States to align their systems in support of BEVs. In practice, this means gradually increasing taxes on fossil-fuelled vehicles while applying little to no taxes on ZEVs. Belgium has shown the effect: when fiscal frameworks clearly favoured electrification, corporate EV registrations surged. Extending that approach across the Single Market would ensure business decisions point firmly toward Europe’s decarbonisation goals.
A wider impact
Fleet electrification is not a side file. It is central to Europe’s climate, industrial and social strategy. On the transport side, it complements the CO2 standards for cars and vans, the Alternative Fuels Infrastructure Regulation (AFIR) and the Green Deal. On the energy side, corporate depots equipped with bidirectional charging can balance peaks, store clean electricity and inject it back into the grid. And socially, fleets guarantee a steady stream of affordable second-hand EVs, widening access to clean mobility. Few opportunities align climate, competitiveness and fairness so perfectly.
The Commission will table its proposal by the end of 2025. Between now and then, the debate will be lively.
At EVision 2026, Eurelectric’s flagship on electrified transport, where fleets will take centre stage – will shape the debate and feeding directly into the trilogues when the proposal lands. Be part of the debate. More information here.
This blog post was originally published as part of Eurelectric’s LinkedIn Friday Features. Subscribe here to stay updated.
Disclaimer: This article is for communication purposes only and may not reflect Eurelectric positions. Any positions taken in this article shall not be attributable to Eurelectric’s official positioning. Official Eurelectric positions are reflected only in position papers published here.