Corporate fleets represent one of the biggest opportunities for expanding zero-emission transport in Europe.

Вusinesses account for roughly 60% of new car registrations in the EU and almost the entire commercial-vehicle market, meaning decisions made by companies can have a major effect on overall demand.

Yet uptake remains uneven. In the first half of 2025, battery-electric cars represented only around 15% of new registrations. The share was lower for vans at 8.5% and trucks at 3.5%.

Industry representatives argue that the main barriers are familiar: high total ownership costs, expensive public charging, insufficient infrastructure and uncertainty over future resale values.

Why Incentives Matter

The European Automobile Manufacturers’ Association, ACEA, argues that targeted fiscal support can be more effective for corporate cars than simply introducing additional mandatory targets. Its main examples are Norway and Belgium.

Norway has reached roughly 90% zero-emission intrusion in the corporate new-car market through a combination of tax advantages, infrastructure support and other benefits. Belgium has also moved quickly, reaching around 80% in the period cited by ACEA. The association’s position is that these results were achieved primarily through incentives rather than strict fleet mandates.

Different Vehicles Need Different Policies

A single policy is unlikely to work equally well for cars, vans and heavy commercial vehicles. For company cars and vans, ACEA favours stronger coordination of national tax incentives and greater sharing of successful policies between EU countries.

According to the organisation, only 19 EU member states had fiscal policies specifically designed to encourage cleaner corporate fleets at the time of its assessment.

For trucks and buses, the transition is more complicated because vehicle costs, charging requirements and operating patterns differ substantially.

Possible measures include giving zero-emission vehicles priority in public procurement, encouraging transport customers to use lower-emission freight operators, supporting fleet operators financially and introducing road charges linked to CO2 emissions.

Infrastructure Remains Essential

Financial incentives alone cannot solve the problem. Businesses need reliable charging infrastructure, predictable electricity costs and confidence that vehicles will retain enough value when they return to the used market.

This is particularly important for commercial operators, where downtime and charging availability can directly affect profitability. Without those conditions, even generous purchase incentives may have limited effect.

A Demand Problem, Not Just a Supply Problem

The debate also highlights a wider challenge in Europe’s transition to electric mobility. Manufacturers are already investing heavily in zero-emission models, but producing more vehicles does not automatically guarantee that businesses will buy them.

ACEA’s argument is therefore that policymakers should focus more strongly on stimulating demand rather than relying mainly on additional regulatory obligations.