Automotive News Europe — 2025-03-05
News from Brussels
The European Commission aims to accelerate demand for electric vehicles in corporate fleets with an emphasis on ending tax breaks for gasoline and diesel-powered company cars, according to a draft paper.
The EU executive has drawn up an auto industry action plan after discussions with sector executives to ensure EU car producers can electrify their fleets and compete with Chinese rivals.
European automakers say they are bringing out new models, but consumer uptake is weak. The market share of EVs in Europe dropped by a percentage point to 13.6% in 2024, according to industry association ACEA. It picked up to 15% in January.
A draft communication from the Commission, seen by Reuters, says that corporate fleets make up about 60% of new car registrations in the EU. “To ensure an adequate uptake of zero-emission vehicles in corporate fleets, eliminating distorting subsidies for fossil fueled vehicles is instrumental,” it says.
The draft paper states that the Commission will propose legislation to decarbonize corporate fleets by the end of the year, with measures to support demand for EVs.
The Commission will also publish recommendations on 5 Marc to national, regional and municipal authorities on action they can take to accelerate the uptake of EVs.