Why a Corporate Fleets Mandate Doesn’t Work

The automotive industry is undergoing a major transformation, shifting from traditional powertrains to zero emission vehicles. Corporate vehicle registrations are responsible for up to 60% of new vehicle purchases and are therefore recognised as a key facilitator of reducing overall fleet emissions. Most other new vehicles are financed via consumer loans. Moreover, roughly 80% of all European consumers will buy a used car using leasing or loans, making consumer finance the primary mobility enabler for consumers. 

At present, the uptake of Battery Electric Vehicles (BEV) is facing obstacles linked to customer demand, vehicle utility and pricing, supply and infrastructure challenges paired with regulatory instability and geopolitical fluctuations.

Over the last three years, discussions at the EU level have taken place regarding the role of corporate fleets within the context of Europe’s decarbonisation trajectory. One of the proposals under review to boost uptake is to implement what is referred to as a corporate fleet mandate. The mandate would essentially impose a requirement on all corporate vehicle acquisitions to only buy BEVs, with an intended target of 100% by 2030.

Leaseurope members acquire the majority of new BEV vehicles in Europe, in fact 60% of all EVs sold in the EU are bought by our members. That being said, the current rate of uptake reflects our industry’s ability to acquire these vehicles in line with enabling conditions as referred to above. Ultimately our customers decide whether a vehicle meets all those criteria.

As an arbitrarily set threshold would not address any of those concerns, the introduction of a Corporate Fleet Mandate could lead to scale-down of rental/leasing offerings and/or increased pricing, which will have a major impact on the competitiveness of SMEs which depend on our services.

Leaseurope is at present heavily engaged in dialogue with key Cabinets at the Commission, such as those of Commissioners Hoekstra, Ribera, Tzitzikostas, Albuquerque, Von der Leyen, Fitto and Virkkunen. In parallel Leaseurope and its members are coordinating outreach with the European Parliament and the Council. On 17/7 Leaseurope will participate in the high-level Strategic Dialogue on the EU Corporate Fleets, hosted by Commissioner Tzitzikostas.