European dealers, rental firms and leasing companies are intensifying warnings that proposed EU fleet electrification targets could function as a “back door” ban on petrol and diesel vehicles — even without an explicit prohibition on internal combustion engine (ICE) sales.
The concern was formalised earlier this month in a joint letter to the European Commission, signed by 67 organisations including BMW, Toyota, Arval, Ayvens, Avis, Hertz and Bolt. The signatories urged Brussels not to impose mandatory EV purchase targets on corporate fleets, arguing they would be “highly damaging” and counter-productive.
Corporate fleets account for an estimated 50–60% of new car sales across the EU. Industry groups argue that forcing fleets to electrify more rapidly would sharply reduce demand for new ICE vehicles, accelerating their exit through market dynamics rather than legislation.
The letter warned that high EV purchase and operating costs, alongside insufficient charging infrastructure, could push businesses to keep vehicles for longer or cut new purchases altogether. It also highlighted risks to the used car market, as fleet vehicles typically feed Europe’s second-hand supply after two to three years.
While climate groups support mandatory targets, fleet operators continue to call for incentives and infrastructure investment instead of binding quotas.
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