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Get ready for a major change on Europe's roads! The European Union is about to impose a radical transformation on corporate fleets: by 2030, they will all have to be 100% electric. This initiative, which envisages a 75% target for new acquisitions from 2027, does not just concern rental companies and large corporations, but is aimed at a colossal segment representing 60% of new car sales on the continent. At the heart of the European Green Pact, this measure is much more than a simple constraint; it's a powerful lever for decarbonizing our transport systems and massively boosting the market for used electric vehicles.
Why target corporate fleets?
But why is the EU specifically targeting corporate fleets for this transition? There are two strategic reasons. Firstly, these vehicles play an essential role: they account for the majority of new car sales in Europe. What's more, their useful life is often short (three to five years), which means they quickly feed the second-hand market, making electric cars more accessible to the general public. Secondly, by targeting leasing companies, large corporations and public authorities, the EU is activating a lever with maximum impact. Unlike private individuals, these entities have the financial and logistical capacity to absorb the initial cost of electrification more easily, and thus lead the way.
A gradual but binding timetable
The European Commission does not want a sudden switchover, but rather a gradual, structured timetable. From 2027, at least 75% of new cars purchased or leased by the companies concerned must be electric. This quota will rise to 100% by 2030, marking the end of all combustion-powered vehicles in this segment.
This regulation is in line with the planned ban on the sale of new internal combustion engine cars by 2035. It therefore anticipates this deadline by speeding up the transition in a sector with considerable potential.
Expected environmental and social benefits
This initiative will have a direct and significant impact on greenhouse gas emissions. Given that road transport still accounts for a significant proportion of European emissions, the massive electrification of business fleets is a key step towards rapidly reducing the carbon footprint of our vehicle fleet.
At the same time, this policy has a major social and economic advantage: it will considerably enrich the second-hand market. Company vehicles, which are often well-maintained and resold after a few years, will become more accessible and will help to democratize electric vehicles, particularly for households that cannot afford a new vehicle. Organizations such as Transport & Environment (T&E) have welcomed this measure as a solution that combines environmental efficiency with tangible benefits for consumers.
A boost for European industry
Beyond its ecological impact, this measure also has an industrial objective. By increasing demand for electric vehicles, the EU hopes to stimulate local production of batteries, electronic components and recharging infrastructure.
It also has a strategic aim: to reduce dependence on Asian suppliers, who currently dominate the global battery market. This transition could strengthen Europe's industrial autonomy and create new jobs in green industries.
Challenges ahead
While this measure is ambitious, it is not without its challenges:
- Development of recharging infrastructures: their deployment will have to keep pace with growing demand.
- Initial costs for businesses: companies, especially smaller ones, will need support to absorb the initial investments involved in electrification. However, savings on fuel and maintenance are expected to offset these costs over the long term.
- Adapting tax incentives and maintaining competitiveness: it will be crucial to ensure that tax support measures are adapted and that the timetable does not hamper the competitiveness of European companies.
Next step: official adoption
The draft regulation still has to be examined and approved by the European Parliament and the Council before coming into force. Adoption is scheduled before the end of summer 2025, as part of the European Green Pact. If the text is validated, the first obligations for 2027 will create a strong momentum towards decarbonized mobility.
Conclusion
With this strategy, the European Union is betting on a key sector to accelerate the ecological transition: professional fleets. By targeting this structuring market, it hopes to generate a domino effect: reduced emissions, democratization of electric vehicles via the second-hand market, and development of a more competitive European industry.
The electrification of company fleets is therefore not just an environmental measure, but also an economic and strategic tool for preparing the future of mobility in Europe.
Want to go further? Join the debate!
The electrification of company fleets is a complex subject that has a direct impact on HR strategies. How is your organization preparing for these changes?
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