As of June 2026, opposition is mounting in Brussels and Germany against EU plans to mandate electric vehicles for large corporate fleets starting in 2030. The European Commission intends to deliberate on new requirements for company vehicles, a move prompted by the proposed Clean Corporate Vehicles Regulation. However, company cars play a major role in Europe’s new-vehicle market; consequently, the regulations would impact manufacturers, leasing companies, tradespeople, care services, delivery firms, and construction companies. The core points of contention concern costs, charging infrastructure, and state intervention in business decisions. (vda: 03.06.26)
Opposition to electric vehicle mandate reaches the business sector
The German automotive industry strongly opposes the planned requirements. The VDA, however, does not view them as a market-driven stimulus. The association warns against a new regulatory framework for corporate fleets.
VDA President Hildegard Müller stated: “The VDA opposes the introduction of an additional regulatory framework for corporate fleets, such as the one currently being considered in Brussels.” The industry is therefore calling for better conditions for electromobility, including lower electricity prices, more charging points, and faster grid connections.
Company cars are a key market for Brussels
The EU Commission is focusing on corporate fleets because companies purchase large numbers of new vehicles. Furthermore, businesses typically replace their vehicles more quickly than private owners do. As a result, many company cars enter the used-car market after just a few years.
Brussels aims to use this strategy to push more electric cars into the market while ensuring a larger supply of used EVs becomes available later on. However, critics view this as an indirect mandate for businesses to adopt electric vehicles.
Halt in subsidies for combustion engines intensifies the dispute
Another point of contention concerns state incentives. From 2028 onwards, EU member states are to provide subsidies for company cars only if the vehicles are zero- or low-emission. This could mean that petrol and diesel vehicles are excluded from subsidy schemes at an earlier stage.
It remains unclear exactly which types of incentives Brussels intends to cover. Direct purchase premiums are an obvious candidate, but tax regulations and depreciation rules could also become part of the conflict.
Companies Fear Higher Day-to-Day Costs
For many firms, the purchase price is not the only factor. Charging points at company depots entail costs, and many locations also require upgraded grid connections.
Tradespeople, care services, and delivery companies plan their vehicles based on operational profiles. Long distances, trailer use, and tight scheduling windows make the switch difficult. Consequently, resistance to a rigid electric vehicle mandate is growing.
Policymakers Must Decide on Fleet Regulations
The German government has so far rejected strict mandates for fleets. Chancellor Friedrich Merz has already warned against forcing a transition for large corporate fleets. Berlin is also calling for a technology-neutral approach.
Environmental groups take a different view of the plans, regarding company cars as a lever for reducing transport emissions. The conflict is therefore likely to intensify further in both Brussels and Berlin.