On 16 December, the European Commission unveiled the Automotive Package. Eurelectric welcomes measures to accelerate zero-emission vehicle uptake – especially through corporate fleets and EU-made batteries – but warns that weakening the 2035 phase-out risks undermining investment certainty and slowing Europe’s electrification.
The 2035 dilution carries real risks
The Package includes revised CO₂ standards for cars and vans, reducing the 2035 ambition from a full 100% phase-out to a 90% tailpipe emissions reduction. The remaining 10% could be offset through low-carbon steel or sustainable fuels, allowing plug-in hybrids and internal combustion vehicles to remain on the market alongside battery electric and hydrogen models. Additional flexibilities include “banking and borrowing” for 2030–2032 and a lower 2030 target for vans (40% instead of 50%).
“Weakening the 2035 phase-out of combustion engine sales sends the wrong signal. And it’s problematic for the companies that have already poured billions into electric infrastructure. It’s essential to avoid further dilution in the ensuing political process.”
Eurelectric has consistently called to maintain the existing clear and binding targets to guide investments in vehicles, batteries, charging infrastructure and grids. Mixed signals risk slowing progress and eroding Europe’s competitiveness as the rest of the world is already transitioning to electrification.
Corporate fleets: the fastest lever for EV uptake
A welcomed element from the Package is the proposal for a corporate vehicle initiative with binding national targets for zero- and low-emission vehicles on Member States for 2030 and 2035. Eurelectric strongly supports this approach, although some targets could be more ambitious for some Member States. Overall, focusing on corporate fleets is a winning strategy, as company cars account for around 60% of new registrations, drive twice as much as private cars, and feed the second-hand market – making fleet electrification the quickest route to affordable EVs for consumers.
This is why in a recent position paper, we called for:
- 100% ZEV purchase target for new corporate cars by 2030
- Binding targets for vans and HDVs adapted to operational realities
- An EU-level Eco Score to reward vehicles produced under European environmental and social standards to prioritise EVs made in Europe.
“A strong focus on corporate fleets is the right direction, but the targets established for each Member State must be enforced and supported by the right market conditions. Done right, fleet electrification can unlock more affordable electric vehicles for consumers and deliver a genuine competitiveness boost for Europe’s car industry.”
Looking ahead: turning ambition into deployment
The Automotive Package sets the tone for Europe’s next phase of clean mobility, but its success will depend on maintaining a strong investment signal and creating enabling conditions for fleet electrification. These issues will be at the heart of EVision 2026: Fleet Forward, taking place on 4–5 March at Autoworld Brussels. The event will bring together policymakers, industry leaders and energy experts to explore how company cars, logistics vans and trucks can unlock CO₂ reductions, grid flexibility and competitiveness—and how policy can turn ambition into real-world deployment.