Germany Rejects EU Electric Vehicle Quotas for Company Cars
Politics

Germany Rejects EU Electric Vehicle Quotas for Company Cars

The German government has voiced its opposition to proposed EU regulations aimed at increasing the share of electric vehicles within company car fleets. A spokesperson for the Federal Ministry of Transport told Politico that the government “explicitly rejects blanket legal quotas for electrification” citing the potential for additional burdens on the economy.

Instead, the German government is prioritizing the expansion of charging infrastructure to foster more favorable conditions for electric mobility, aiming to “balance climate goals and competitiveness.

The European Commission has been considering the introduction of electrification quotas for company fleets, mirroring existing fleet emission targets. Member states, businesses, associations and stakeholders were invited to submit feedback on the proposal, with today marking the deadline for responses. Company cars frequently enter the second-hand market and subsequently the private car market, potentially contributing to a rise in the proportion of electric vehicles.

The German Association of the Automotive Industry (VDA) has also expressed its disapproval. President Hildegard Müller told Politico that the VDA “rejects the introduction of an additional regulatory framework for company fleets, as currently considered by the EU Commission”. She warned that additional measures could be “counterproductive” particularly given the economically challenging transformation businesses are already facing and cautioned against “planned economy quotas.

However, the Green Party supports the initiative, arguing that company vehicles enter the second-hand market faster than private cars, creating “a continuous flow of relatively new and affordable electric cars.

The environmental organization Transport & Environment (T&E) echoed similar sentiments, advocating for a more specific target: “We are calling for 90 percent of newly registered company cars for large companies to be fully electric by 2030”. This should apply to companies with an annual revenue of over €50 million and more than 250 employees, according to the organization.