The German government has voiced opposition to proposed European Union regulations aiming to increase the proportion of electric vehicles within company car fleets.
A spokesperson for the Federal Ministry of Transport stated that the government “explicitly rejects blanket legal quotas for electrification” citing potential additional burdens on the economy. Instead, the focus remains on expanding charging infrastructure to create better conditions for greater electromobility, aiming to balance climate goals and competitiveness.
The EU Commission is considering introducing quotas for the electrification of company car fleets, mirroring general fleet emission limits. Member states, businesses, associations and other stakeholders were invited to submit feedback on the proposal earlier this year, with today marking the deadline for responses. Company cars often re-enter the market as used vehicles, potentially driving up the proportion of electric cars available to private buyers.
The German Association of the Automotive Industry (VDA) also opposes the concept. VDA President Hildegard Müller told Politico that the introduction of an additional regulatory framework for company car fleets, as currently being considered by the EU Commission, should be rejected. She warned that additional measures could be “counterproductive” particularly given the challenging economic transformation companies are currently undergoing and cautioned against “planned economy quotas.
However, the Green Party supports the initiative, arguing that company vehicles enter the used car market more quickly than private vehicles, creating a continuous stream of relatively new and affordable electric cars.
The environmental campaign group Transport & Environment (T&E) similarly advocates for stricter measures, proposing a requirement that 90 percent of newly registered company cars for large businesses must be fully electric by 2030. This would apply to companies with an annual turnover of over €50 million and more than 250 employees, according to the organization.