[Advertorial] The EU automotive sector is once again failing to recognise a golden opportunity. While the industry has been complaining non-stop about a lack of demand for battery electric vehicles (BEVs), the European Commission is preparing a solution: a new law to accelerate the electrification of corporate fleets.

Sofie Grande y Rodriguez, Cleen Fleets Policy Manager at T&E
Company cars are Europe’s largest market: 6 out of 10 of new cars are bought by businesses. In addition, companies tend to prefer ‘Made in EU’: 75% of new corporate cars this year were produced by European carmakers, a considerably higher share than for private buyers (63%).
Corporate fleets have a lot of untapped potential to become a lead EV market for European carmakers. We should – and can – expect them to lead the charge on electric. Companies have the financial muscle to invest in BEVs and they receive huge tax benefits when doing so. Compared to private buyers, companies in France get almost €5,000 in tax benefits through depreciation write-off or VAT deduction. In Germany it is even €14,000.
Yet, corporate BEV adoption has been lagging behind private households over the last years. Now, companies are only slightly ahead in France (by 0.9 percentage points), while in Germany they remain to go slower (by 1 p.p.). An EU initiative setting binding EV targets on corporate fleets is therefore not just a good idea – it is justified.
Placing targets on large companies would create a steady and predictable EV demand helping European manufacturers stay competitive in the global market. It could generate a demand for almost 2 million BEVs for European carmakers by 2030, helping them meet CO2 emission standards and avoid costly penalties.
But during a high-level exchange on the upcoming proposal with Transport Commissioner Apostolos Tzitzikostas and key stakeholders, the car industry hit the brakes and rejected the idea of binding targets altogether, focussing on voluntary measures, incentives and ‘guidance’ from the Commission. However, anything voluntary is too little, too late and will not help accelerate demand before 2030. 
So, do European carmakers actually want this EV transition to happen? While Chinese EVs are gaining ground in Europe, our industry is saying ‘no’ to a stable and reliable demand measure. If regaining European industrial competitiveness is what they want, they should stop making excuses and start seizing opportunities.

 

Pictures: T&E 
This article is an Advertorial from T&E and as such does not reflect the opinion of Fleet Europe.
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