EU Parliament Groups Make Company Car EV Targets Voluntary

Company Car Fleets: EU Parliament Majority Waters Down EV Targets

Companies in the EU are unlikely to face binding quotas for electric company cars. The three largest centrist groups in the European Parliament, the EPP, the Socialists and Democrats (S&D) and Renew Europe, have agreed a joint position that turns the planned national targets for electrifying corporate fleets into non-binding goals, electrive reported on 27 October, citing Automobilwoche.

Key takeaways

The European Commission proposed in its automotive package at the end of 2025 that member states must electrify company car fleets from 2030, with a different target for each country.

The compromise makes these targets "aspirational": no penalties for countries that miss them.

Environment committee vote: early November 2026. Plenary vote: probably December 2026.

Why company cars matter

Company cars make up a large share of new car registrations in many EU countries, and after a few years they become the used cars that private buyers drive. The Commission saw fleet rules as a way to speed up the supply of affordable used electric cars. The idea was modelled on Belgium, where the tax treatment of company cars strongly favours electric models.

"For corporate fleets, we have found a good compromise with the other groups that protects fleet operators from major burdens," said Jens Gieseke, an EPP member of the European Parliament.

Part of the wider CO2 debate

The same political majority also backs softer CO2 targets for carmakers. As we reported, two Parliament committees voted on 22 October for new car fleet emissions to fall by 95% instead of 100% by 2035 compared with 2021. With credits for low-carbon European steel, the reduction could drop to 87.5%. That would allow petrol and hybrid cars to be registered after 2035. The Parliament still has to agree the final text with the member states.

What it means

For fleet managers and company car drivers, little changes: tax rules in each country will continue to decide whether an electric company car is the cheaper choice. For private buyers, the decision could slow the flow of two- to four-year-old electric cars onto the used market in countries without strong company car tax incentives.

More background in our electric cars section and the latest auto news.