{"id":477979,"date":"2025-10-06T11:12:20","date_gmt":"2025-10-06T11:12:20","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/477979\/"},"modified":"2025-10-06T11:12:20","modified_gmt":"2025-10-06T11:12:20","slug":"fleets-leasing-and-rental-companies-oppose-eu-corporate-fleet-zev-mandate","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/477979\/","title":{"rendered":"Fleets, leasing and rental companies oppose EU corporate fleet ZEV mandate"},"content":{"rendered":"

Fleets, leasing and rental companies have registered strong opposition to the European Commission\u2019s (EC) proposal of a zero emission vehicle (ZEV) mandate for corporate fleets.<\/strong><\/p>\n

The EC<\/a> says corporate customers accounts for 60% of sales within the European Union, so accelerating the uptake of ZEVs by mandating that corporate fleets buy or lease ZEVs could reduce greenhouse gas emissions, especially given the higher mileage of company vehicles.<\/p>\n

Higher penetration of ZEVs on corporate fleets would also support the European automotive industry and boost the supply of used electric vehicles, according to the EC.<\/p>\n

Boosting ZEV demand<\/strong> <\/p>\n

The EU\u2019s CO2 standards for new cars and vans target manufacturers and the supply side of the automotive industry, rather than the demand side, where: \u201cthe uptake of ZEVs in corporate fleets remains below its potential, particularly among commercial vehicles and high-mileage segments,\u201d according to the EC.<\/p>\n

It acknowledged that some larger fleets and leading companies have made progress towards decarbonising their fleets, but said advances in the EU-wide market is inconsistent.<\/p>\n

As a result, it is assessing different policy options, including the setting of mandatory ZEV targets for Member States, individual companies, or fleets<\/a>.<\/p>\n

Industry consultation<\/strong> <\/p>\n

A six-week consultation<\/a> period ended in September, attracting 483 responses from companies, associations, NGOs, trades unions and private individuals.<\/p>\n

These responses revealed a sharp division between fleet operators and their funders on one side, and environmentally-focused organisations on the other.<\/p>\n

Fleets and funders largely opposed the idea of a ZEV purchase mandate, and said the EC\u2019s efforts should be directed at the implementation of enabling conditions that would stimulate natural demand for electric vehicles.<\/p>\n

Fleet reaction<\/strong> <\/p>\n

The Bosch Group, for example, runs a fleet of 10,000 vehicles in Germany and achieved Scope 1 and 2 carbon neutrality in 2020. It said the adoption of ZEVs largely hinges on costs of ownership, infrastructure availability, and charging times, and advised against mandatory quotas for fleets, arguing that they \u201cwould impose additional financial and administrative burdens on companies already incentivized by existing legislation (ETSII, CSRD reporting, etc.) to reduce their CO2 emissions.\u201d<\/p>\n

Logistics firm Geopost, which includes last mile delivery operator DPD, has committed to be carbon net zero by 2040, but said the deployment of public and private charging infrastructure has to be guaranteed before any mandatory purchase targets are introduced.<\/p>\n

Geopost has already invested in 7,000 charging points for its light commercial vehicles in 20 European countries. However, in order to achieve its intermediary target of reducing its greenhouse gas emissions by 43% by 2030, the company said it would need to double its deployment of charging infrastructure.<\/p>\n

Fleets in favour of mandate<\/strong> <\/p>\n

Fleets that have already made public commitments to transition to 100% ZEVs were more in favour of an industry-wide mandate. Energy company EDF, which runs a fleet of more than 48,000 cars and vans, has committed to electrify its vehicles by 2030, and recommended that the EC should introduce a directive that all fleets of 100 or more vehicles (including company cars, leasing and rental firms) should only be able to buy zero emission cars and light commercial vehicles from 2030.<\/p>\n

And Ingka Group\/IKEA Netherlands would support\u00a0a legislative proposal that set binding zero-emission targets for corporate fleets of 100% electric cars by 2030 and 100% electric vans by 2035. However,\u00a0it also called on the EU to ensure widespread, reliable charging infrastructure, a modernised, resilient electricity grid, with streamlined planning processes, and strong financial and non-financial incentives to accelerate EV adoption.<\/p>\n

\u201cWithout these enabling measures, the Clean Corporate Fleets initiative will fall short of its full economic, environmental, and societal potential,\u201d it said.<\/p>\n

Rental companies oppose mandate<\/strong> <\/p>\n

Major rental companies argued forcefully against the EC\u2019s proposal. Sixt described any ZEV mandate as \u201can inappropriate measure\u201d and said the EC itself accepted that most member states do not yet have adequate charging infrastructure.<\/p>\n

\u201cThis will not change by 2030. It is disproportionate to force rentals companies to purchase BEVs that cannot be used for rental purposes,\u201d it said. \u201cCompared to ICE and PHEV, the purchase costs of ZEVs are higher and their residual values considerably lower. This means that the total costs of ownership for ZEVs are significantly higher. Mandates will therefore make rental and leasing prices considerably more expensive for consumers.\u201d<\/p>\n

Enterprise said mandatory vehicle acquisition targets \u201cwould incentivise longer vehicle holding times for non-BEV vehicles and the steady reduction of new vehicle acquisitions. Ultimately, they would be self-defeating as rental and other mobility service providers are one of the primary drivers of European fleet renewal.\u201d<\/p>\n

Leasing companies oppose mandate<\/strong> <\/p>\n

Leasing companies were equally opposed, arguing that mandates risk distorting vehicle demand, without addressing the underlying barriers to EV adoption.<\/p>\n

Ayvens said a mandate risked inflating the price of ZEVs by increasing demand, while the consequent rise in supply of used electric vehicles would put more pressure on residual values. Both factors would drive up lease rates and \u201cgenerate counterproductive effects: reduction of corporate fleet size, freeze in contract renewals, diversion towards privately-owned ICE cars.\u201d<\/p>\n

Arval France highlighted the fact that it is corporate lessees, not leasing companies, that decide which vehicles best fit their needs.<\/p>\n

Rather than setting specific targets for corporates, Arval said the Commission should focus on investing in charging infrastructures, and financial subsidies for both new and used car ZEVs.<\/p>\n

\u201cWithout a well-functioning secondary market for BEVs, no additional progress is realistic,\u201d it said.<\/p>\n

OEM reaction<\/strong> <\/p>\n

Volvo said secondhand markets for electric cars currently function well only in countries, such as Norway and Denmark, where incentives are available.<\/p>\n

\u201cIn most other European markets, the higher price of second-hand ZEVs compared to equivalent conventional second-hand car models, limited possibilities to charge and eventual concerns about the battery state of health and long-term battery durability, prove to be blockers,\u201d it said. \u201cAny initiative must include the right incentive package, not just targets for new ZEV sales, as well for running a ZEV and purchasing a used ZEV.\u201d<\/p>\n

Toyota argued that a corporate mandate for fleets risks \u201ccollapsing residual values, increasing total cost of ownership, and slowing fleet renewal,\u201d creating a \u2018Havana effect\u2019.<\/p>\n

\u201cThis phenomenon is already evident in France: although ZEV sales have increased by 32% as a result of the national mandate for corporate fleets, overall corporate registrations have declined by 12.5%, driven by market hesitation resulting in extended vehicle holding periods,\u201d it said.<\/p>\n

Enabling conditions<\/strong> <\/p>\n

The inadequacy of Europe\u2019s charging network, and the delays and grid capacity constraints facing fleets and charge point operators that want to install chargers were raised by several respondents to the EC consultation.<\/p>\n

\u201cIn France the grid is able to deliver any capacity required, whereas grid upgrade can take three to eight years in Germany and some sites will have to host batteries in order to start delivering electricity soon,\u201d said Engie.<\/p>\n

\u201cDelays in grid connections add years to project timelines and increase costs. For instance, a grid connection request in the Netherlands today would not be granted before 2030.\u201d<\/p>\n

Mandate supporters<\/strong> <\/p>\n

But several organisations did support the EC\u2019s proposals. The Climate Group\u2019s EV100<\/a> said the Commission should set clear, binding targets for all stakeholders, including rental and leasing companies,\u00a0of 100% zero emission cars by 2030, and 100% zero-emission vans and medium-duty vehicles by 2035. It added, nonetheless, that the EU also needed to deliver accessible, reliable and affordable charging, allied to a range of financial and non-financial incentives to encourage EV uptake.<\/p>\n

And Transport & Environment<\/a>, which started campaigning for a corporate fleet mandate last year, called for large companies in the EU to reach an overall electrification target of 90% for new registrations by 2030 – differentiated per Member State.<\/p>\n

\u201cThis would cover around 40% of all corporate cars in Europe,\u201d it said.<\/p>\n

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