The European Commission is preparing to unveil new CO₂ regulations for company fleets in mid-December, a move that industry groups warn could amount to an early ban on combustion engine vehicles. The proposal, expected to be presented on 16 December, may include mandatory electric vehicle (EV) quotas that would take effect years before the bloc’s 2035 target for zero-emission cars.
According to Automobilwoche, which cited industry sources, the Commission plans to introduce a binding quota for electric vehicles in corporate fleets — potentially requiring at least 50% of new company car registrations to be electric by 2027 and as much as 90% by 2030. The Commission has not confirmed these figures or the date of publication, stating only that it is “currently working on the proposal” and that “further information will follow shortly.”
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The potential regulation could have wide-ranging implications for the European vehicle market, particularly in Germany, where about two-thirds of new car registrations are made by companies. The EU defines “fleets” broadly, covering not only corporate vehicles but also dealer and manufacturer registrations and rental car fleets. If adopted, the new rules could accelerate the transition to electric mobility across multiple sectors — though some businesses warn they are not yet ready for such a shift.
“The EV quota in fleets and the end of combustion engines are to be linked,” an industry insider told Automobilwoche. The specific mechanism, however, remains unclear. Critics argue that a rapid introduction of electric quotas could strain supply chains and increase costs for fleet operators still adapting to slower-than-expected EV adoption.
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Nico Gabriel, CEO of car rental company Sixt, warned that stricter requirements could force companies to raise prices for customers. “We would have to raise prices massively because costs would go through the roof,” Gabriel said. “Electric cars are more expensive, have lower residual values and are more costly to maintain. We would have to pass that on to our customers.”
If the Commission’s proposal is tabled as planned in December, discussions would likely take place throughout 2025, with implementation possible by 2026. That timeline would leave little room for the industry to adjust before a potential 2027 start date for new fleet targets — a prospect that could reshape Europe’s vehicle market sooner than many had anticipated.
