EU plans EV mandate for fleets by 2030
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The EU may soon require all rental and corporate fleets to go electric by 2030, raising concerns from automakers, rental firms, and lawmakers alike.
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An employee of the German car manufacturer Volkswagen checks an ID.3 electric car at the transparent factory in Dresden, Germany, Wednesday, May 14, 2025. (AP Photo/Matthias Schrader)
The European Union is preparing legislation that could force all rental and corporate vehicle fleets to transition exclusively to electric vehicles (EVs) by 2030, according to a report by Bild, Germany's most widely circulated newspaper. The draft directive, which is currently under quiet discussion within the European Commission, is expected to be unveiled as early as late summer before moving to the European Parliament.
This regulation is seen as a strategic move to advance the bloc’s green transition, aligning with the EU’s broader ban on combustion engines. By 2035, the bloc mandates a 100% cut in CO2 emissions from new vehicles, effectively outlawing gasoline and diesel cars. The new rules would significantly impact the auto market, covering approximately 60% of new car sales, and apply to all rental firms and businesses operating vehicle fleets across member states.
Automakers have sharply criticized the proposal, citing unsustainable costs and the need for comprehensive retooling of production lines. Major rental companies like Enterprise, Hertz, and Sixt are also raising alarms. In 2024, many began reducing their EV fleets due to high repair expenses, insufficient charging infrastructure, and poor resale values.
Sixt CEO Nico Gabriel warned that most vacationers still avoid EV rentals and that a forced shift would lead to increased rental costs, primarily due to infrastructure upgrades. EU lawmaker Markus Ferber called the Commission’s plan “unrealistic” and urged its withdrawal, highlighting the practical difficulties for fleet operators and consumers alike.
Broader impacts on the auto sector
The proposed shift adds further pressure to Europe’s already strained automotive industry. Carmakers are facing mounting penalties for falling short of EV sales targets while simultaneously investing heavily in new manufacturing lines, batteries, and grid infrastructure. Stellantis, one of the continent’s largest carmakers, warned it may have to shut down plants if it cannot meet upcoming EU deadlines.
Former EU Commissioner Thierry Breton has cautioned that the transition to electric vehicles could cost up to 600,000 jobs, deepening concerns about the economic ripple effects. Industry leaders are calling for subsidies and government support to remain competitive with counterparts in China and the United States.
Beyond the auto sector, the EU’s broader green agenda is also under scrutiny. As Russian energy imports continue to fall due to Ukraine-related sanctions, European countries face rising energy costs and increasing dependence on alternative, and often more expensive, supplies.
