A coalition of three political groups in the European Parliament has agreed to replace proposed binding electric vehicle targets for corporate fleets with voluntary commitments, according to German trade publication Automobilwoche.
The European People’s Party (EPP), Socialists and Democrats (S&D), and Renew Europe groups have reportedly agreed on a joint position that would remove mandatory electrification quotas for company cars from the European Commission’s proposed Auto Package.
Jens Gieseke, an EPP member of the European Parliament and chair of its Transport Committee, told Automobilwoche that the agreement was intended to limit the burden on fleet operators.
“For corporate fleets, we have found a good compromise with the other groups that protects fleet operators from major burdens.”
The reported agreement represents a change from the Commission’s original proposal, which called for country-specific requirements to accelerate the adoption of electric and low-emission company vehicles from 2030.
Binding Targets Could Become Voluntary
The European Commission’s Auto Package included proposed requirements for member states to increase the adoption of zero-emission and low-emission vehicles among large companies. The initiative was intended to accelerate fleet electrification, drawing partly on Belgium’s company-car taxation system, which has contributed to higher electric vehicle sales in the country.
Under the reported parliamentary compromise, the proposed binding targets would instead become aspirational targets. Member states would therefore be able to pursue the goals voluntarily, without facing penalties for failing to meet them, Automobilwoche reported.
The agreement concerns the position of the three parliamentary groups and does not, by itself, establish a final EU policy. Further legislative steps remain before the Auto Package can be adopted.
Wider Debate Over the 2035 Combustion Engine Phase-Out
The corporate fleet proposal is part of a broader debate over the EU’s vehicle emissions framework. The European Parliament’s Industry and Transport Committees have already voted in favour of changes that would soften the proposed phase-out of new combustion-engine vehicles.
The EPP, S&D and Renew Europe groups have also reportedly agreed on a position that would reduce the required CO₂ emissions cuts for new cars by 2035.
Under the proposal, manufacturers would need to reduce emissions by 95% compared with 2021 levels, rather than achieving a 100% reduction. A further reduction of up to 7.5 percentage points could be credited to the use of European-made, climate-friendly steel in vehicles.
If the full credit were applied, the required emissions reduction could fall to 87.5%. The groups say this approach would leave room for some new combustion-engine and hybrid vehicle registrations after 2035.
These changes remain proposals within the legislative process and should not be interpreted as a finalized revision of the EU’s emissions rules.
Next Legislative Steps
According to information reported by Spiegel, the European Parliament’s Environment Committee is expected to vote on the proposals in early November, followed by a potential plenary vote in December.
The outcome will determine how the corporate fleet provisions and proposed changes to vehicle CO₂ requirements progress through the European legislative process.
For automakers, fleet operators and charging infrastructure providers, the final rules will help determine the pace of corporate fleet electrification and the regulatory framework for new vehicle sales beyond 2030.