ELECTRIVE — 2025-11-04
News from Brussels
The EU has been revising its CO2 regulations for companies for some time now – many companies fear an early combustion engine ban through the back door. The Commission is expected to present its plans in mid-December. In Germany, almost two-thirds of all new registrations would be affected.
On 16 December, the EU Commission apparently intends to present its plans for new CO2 regulations for company fleets. At least, that is what Automobilwoche reports, citing industry sources. The Commission itself did not want to confirm the date, but stated in general terms that it was currently working on the proposal: “Further information will follow shortly,” said a spokesperson.
If critics have their way, this proposal could have at least as much impact on the vehicle market as the EU’s goal of only allowing new cars with zero grams of CO2 emissions per kilometre from 2035 onwards – since this is only possible with electric drives, there is colloquial talk of a ‘combustion engine ban’, even if combustion engines are not directly excluded.
Since the EU – understandably – is not yet providing any figures or comments while work on the draft is ongoing, this is naturally fuelling rumours. Industry circles say that the Commission wants to stick to a fixed electric car quota, albeit not a 100 per cent quota by 2030 as reported in the summer, bringing forward the overall target for company fleets by five years. Nevertheless, the figures currently circulating are ambitious: the EU is said to be planning an electric quota of at least 50 per cent for 2027, with rumours currently suggesting 90 per cent for 2030. As mentioned, this has not been confirmed.
As discussions about softening the EU target for 2035, moving away from a rigid regulation towards a more flexible mechanism, are not limited to German politics, the EU also appears to be shifting its position on this issue. According to Automobilwoche, citing an industry insider, “the EV quota in fleets and the end of combustion engines are to be linked.” However, what exactly this could mean is not explained in detail.
One thing is clear, though: the timing is interesting. An EU proposal presented at the end of 2025, discussed next year and implemented in this or a modified form, will only become binding in the course of 2026. If, as is (allegedly) the case, an electric car quota of at least 50 per cent were to apply to company fleets from 2027 onwards, this could pose an enormous challenge for the market. Especially as the industry is currently adjusting to a somewhat slower ramp-up of electric mobility.
It should also be noted that the EU defines ‘fleets’ not only as traditional company fleets, but also as all registrations to companies. This also includes tactical new registrations by manufacturers and dealers, as well as the entire car rental industry. These commercial registrations account for two-thirds of the market in Germany.
In the past, Sixt CEO Nico Gabriel spoke out against overly strict regulation and has already announced the impact on his own customers should such regulation be introduced. “We would have to raise prices massively because costs would go through the roof,” Gabriel said. “Electric cars are more expensive, have lower residual values and are more costly to maintain. We would have to pass that on to our customers.”