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Breaking: European Commission’s new mandate for corporate electric vehicles

Ce que vous devez retenir

  • A proposal likely to be included in the August legislation would exempt owners of zero-emission heavy-duty trucks from toll charges and vehicle taxes until the end of 2031.
  • A summer of uncertaintyUntil the Commission’s draft law enters public consultation in mid-August, hundreds of thousands of businesses in the leasing and rental sectors, along with corporate fleet operators, face a summer of uncertainty.
  • This regulatory limbo will likely have a negative impact on new car sales—both internal combustion and electric—adding further pressure to an industry already challenged by international competition, especially from Chinese manufacturers who have gained a significant advantage in electric vehicle technology.

A hot summer awaits leasing companies, rental businesses, and corporate fleet owners across the European Union. According to insider information, the European Commission has nearly finalized its legislative proposal regarding corporate vehicle fleets in all EU member states.

The Commission plans to publish its draft law for public consultation on August 15, 2025, with the consultation period lasting one to two weeks. This new legislation will include the much-discussed mandatory electric vehicle requirements for corporate fleets, along with market support measures and disincentives for non-compliance.

Who will be affected by the new regulations?

The mandatory electric vehicle quotas won’t just impact leasing and rental companies. The requirements will extend to all businesses owning more than 100 corporate vehicles. This scope means hundreds of thousands of companies across the EU will need to pivot toward electric vehicles to avoid penalties and benefit from incentives included in the Commission’s legislative plan.

Such a shift comes with significant financial implications. Many EU member states, including those in Southern Europe, could see substantial revenue losses as electric vehicles are exempt from registration taxes, unlike their plug-in hybrid counterparts which often face registration taxes around 25%. (It’s worth noting that plug-in hybrids currently dominate the corporate car segment.)

For perspective, registration tax revenues in some European markets exceeded $500 million in 2024, with projections indicating even higher figures for 2025.

Current and upcoming electric vehicle mandates

While the European Commission’s plan is still being finalized, some countries have already established their own timelines for transitioning to electric vehicles:

Starting January 1, 2025, one in four new corporate vehicles must be electric in some markets.

From January 1, 2026, one in three new rental vehicles must be electric.

What has the Commission already announced?

The European Commission has revealed plans to boost electrification in the heavy-duty sector. A proposal likely to be included in the August legislation would exempt owners of zero-emission heavy-duty trucks from toll charges and vehicle taxes until the end of 2031.

Market analysts suggest this exemption might extend to corporate electric cars as well. While this would lower operational costs for companies using these vehicles, it could also dangerously reduce government revenues from toll collections, as vehicle tax revenues are already minimal or non-existent for electric vehicles in most member states.

A summer of uncertainty

Until the Commission’s draft law enters public consultation in mid-August, hundreds of thousands of businesses in the leasing and rental sectors, along with corporate fleet operators, face a summer of uncertainty. Many are putting decisions about their corporate fleets on hold until the regulatory landscape becomes clearer.

This regulatory limbo will likely have a negative impact on new car sales—both internal combustion and electric—adding further pressure to an industry already challenged by international competition, especially from Chinese manufacturers who have gained a significant advantage in electric vehicle technology.

The automotive world is watching closely as these regulations take shape, with the future of corporate mobility hanging in the balance.

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