Decarbonization of Europe’s corporate fleet

Corporate fleets—including company cars, leasing companies, and short-term rentals—account for around 60% of new car registrations in Europe and represent an important lever in the transition to zero-emission vehicles (ZEVs). In March 2025, the European Commission published an Industrial Action Plan for the Automotive Sector, which highlighted the role of corporate fleets and the potential of demand-side measures—such as fiscal incentives—to accelerate the uptake of ZEVs.

This policy brief provides an overview of what corporate fleets are and their significance in the transition to ZEVs, specifically battery electric vehicles (BEVs). It surveys the corporate fleets of EU Member States and their composition of BEVs, with a focus on cars specifically. To illustrate the influence of national policies on fleet electrification, this brief examines Belgium, a best practice example with a high share of battery electric corporate cars, and Germany, the largest car market by new registrations with a medium share of battery electric corporate cars. The paper concludes by outlining policy options for EU policymakers aimed at fostering a coordinated and effective approach to corporate fleet electrification across Member States.

Figure. Tax savings for selected battery electric and gasoline corporate carsA chart of different colors
 

Key takeaways

• Corporate fleets are central to Europe’s BEV transition. Compared with private vehicles in the EU, they account for a larger share of new car registrations, have a quicker vehicle turnover, and drive more kilometers—making them key to accelerating BEV uptake and strengthening the second-hand BEV market.
• National policies—particularly tax incentives—play a key role in driving fleet electrification. In Belgium, corporate BEV adoption is encouraged through favorable tax deductions, while combustion engine vehicles are penalized through less advantageous tax treatment. In contrast, Germany provides a financial advantage for BEVs via accelerated first-year depreciation compared to combustion vehicles. A cost comparison of comparable BEV and gasoline models in both countries shows that, over a six-year period, corporate tax savings for BEV ownership are significantly higher in Belgium than in Germany.
• The policy landscape for supporting corporate BEV adoption is fragmented across the EU. While some countries show a high share of BEVs among new corporate car registrations, inconsistent or less effective incentives in other markets could slow overall progress.
• Coordinated action at the EU level could help accelerate the transition to BEVs in corporate fleets across Member States. Potential measures range from sharing best practices and issuing guidance to setting binding targets for fleet electrification.