A coalition of 67 companies, including global automakers BMW and Toyota, alongside major auto rental and leasing firms across Europe, submitted a letter to the European Commission on Monday urging it not to impose mandatory targets for the purchase of electric vehicles (EVs) for corporate fleets.
The signatories argued that such a mandate would be “cripplingly expensive and counter-productive” and damage the market. Corporate fleets, which include company cars, account for an estimated 50 to 60 per cent of all new car sales in the European Union (EU).
See also: Ford CEO Warns EU on Electric Vehicle Transition, Calls for ‘Realistic’ 10-Year Plan
The letter, addressed to European Commission President Ursula von der Leyen and other commissioners, stated that the primary obstacles to EV adoption are the high purchase and operating costs, coupled with insufficient charging infrastructure.
The coalition warned that a mandatory target would be “highly damaging,” claiming that the associated high costs would force companies to either retain older internal combustion engine (ICE) vehicles for longer or drastically reduce their overall purchase of new vehicles.
See also: Six EU States Urge Brussels to Keep Hybrids and Alternative-Fuel Cars Beyond 2035
Instead of binding quotas, the signatories proposed a strategy focused on incentives and infrastructure investment, citing this combination as the “recipe for success in European countries with the fastest EV update.” They also emphasized the need for incentives to support the second-hand EV market, as many leased vehicles are resold after two or three years.
Signatories included major firms such as BNP Paribas’ Arval, Societe Generale’s Ayvens, Avis, Bolt, and Hertz. The letter comes ahead of a package of proposals the EU executive is scheduled to unveil on December 16, which is expected to address CO2 emissions targets and include plans for corporate fleets.
See also: Industry Source Says EU Set to Delay Auto Climate Plan Amid 2035 Engine Ban Pushback
In contrast, the campaign association Climate Group supports a mandated target, pointing to over 120 companies, including corporate giants like EDF, Ikea, Siemens, and Unilever, that have voluntarily committed to achieving 100 per cent electric fleets.