ACEA — 2025-08-05
News from Brussels
Europe has a zero-emission vehicle demand problem. Battery-electric models account for only around 15% of car registrations in the first half of 2025. In the same period, the share stood at just 8.5% for vans and 3.5% for trucks.
Corporate registrations make up around 60% of the EU car market and almost 100% in the case of commercial vehicles. Targeted, smart measures that are tailor-made for the different vehicle segments are therefore urgently needed to boost uptake.
But why is the market so sluggish? Like private buyers, corporate markets are stymied by:
While mandates are now being considered to boost demand, real-world evidence suggests that well-designed incentives can be far more effective in the case of the car market. A quick glance at forerunners in transitioning their domestic corporate markets underlines how incentives can make a marked difference.
In Norway, around 90% of new sales in the corporate market for cars are zero-emission, thanks to a smart mix of tax exemptions/reductions for both purchases and infrastructure, tolling incentives and other privileges such as preferential parking and bus lane use. All of this without legislative mandates. Belgium has similar schemes and is not far behind with an 80% market share last year.
No strict mandate was needed to accomplish these milestones in a short period. And no further EU regulation on vehicle supply was needed either. But only 19 EU countries have fiscal policies in place to stimulate the greening of corporate fleets. We recommend establishing these schemes in all member states.
The EU should opt for a non-legislative proposal for cars and vans that avoids further mandatory targets on the supply of vehicles and focuses on guiding the way by better coordinating national fiscal incentives and best practices at the EU level.
For commercial vehicles, a broad range of policy options should be considered, from prioritising zero-emission vehicles in public procurement tenders to incentivising shippers and transport buyers to progressively increase the share of their shipments carried by zero-emission vehicles. This should be complemented by targeted support for transport operators, the implementation of CO2-based road user charges, and other enabling transport policy measures.
Stimulating the purchase of zero-emission vehicles is a powerful lever to boost demand and meet CO2 reduction targets. But choosing the most efficient instrument will determine the impact and success, and these will only work when the enabling infrastructure and other preconditions are in place.