EU highlights confidential electric vehicle plan
(MENAFN) The European Union is preparing legislation that could require all rental companies and corporate fleets to switch exclusively to electric vehicles (EVs) by 2030, according to a report by Bild citing sources in Brussels. The European Commission is reportedly discussing the directive in secret, with a possible announcement expected as early as late summer before it goes to the European Parliament for approval.
This move is seen as a strategy to speed up the green transition and enforce the EU’s ban on combustion engine vehicles, which aims for zero CO2 emissions from new cars by 2035, effectively banning gasoline and diesel vehicles. Car makers have criticized the plan, citing the high costs and the need to fully overhaul production lines.
If adopted, the rules would affect rental companies and businesses with fleets, which account for about 60% of new car sales in the EU, limiting their vehicle purchases to EVs only. A Commission spokesperson confirmed the plan is under development but declined further details.
Industry insiders warn the measure could harm the rental sector, noting companies like Enterprise, Hertz, and Sixt have already reduced their EV fleets in 2024 due to issues like inadequate charging infrastructure, expensive repairs, and low resale values. EU lawmaker Markus Ferber called the plan “unrealistic,” while Sixt CEO Nico Gabriel expressed concern that mandatory electrification would raise rental prices because of the costs tied to charging infrastructure.
The EU’s push for greener transportation is putting pressure on the automotive industry and broader economy. Automakers face fines if they don’t increase EV sales and must invest heavily in new factories, batteries, charging networks, and power grids. The transition also poses a risk to jobs, with Stellantis warning it might close plants if EU targets are missed, and former EU commissioner Thierry Breton estimating a potential loss of 600,000 jobs.
Manufacturers are calling for subsidies and government support to help compete with growing EV industries in China and the US.
Similar challenges affect other sectors as the EU reduces reliance on Russian energy amid sanctions related to Ukraine. Russian officials warn that cutting off their energy supplies will force Europe to depend on more expensive alternatives or rerouted Russian energy through intermediaries.
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