EU prepares new legislation of switching cars to EVs
(MENAFN) The European Union is reportedly preparing new legislation that would require all rental and corporate car fleets to transition to electric vehicles (EVs) by 2030, according to a Bild report citing Brussels sources. The proposed directive is being quietly developed by the European Commission and may be presented as early as late summer before heading to the European Parliament.
Seen as a way to accelerate the EU’s green agenda, the regulation would serve as an indirect method of enforcing the bloc’s 2035 ban on internal combustion engine vehicles, which requires a complete cut in CO2 emissions from new cars. Car manufacturers have raised concerns over the cost and logistical challenges, as the shift would demand full retooling of production lines.
If passed, the legislation would apply to all rental companies and businesses with car fleets across the EU, meaning they would only be allowed to buy electric vehicles. This would affect roughly 60% of new car sales, according to Bild. A European Commission spokesperson confirmed that work on the initiative is underway but gave no further details.
The proposal has sparked backlash from both industry and lawmakers. Rental firms like Enterprise, Hertz, and Sixt have already scaled back their EV fleets in 2024 due to poor charging infrastructure, expensive repairs, and low resale value. EU lawmaker Markus Ferber called the proposal “unrealistic,” while Sixt CEO Nico Gabriel warned it could raise rental costs and limit consumer choice, as vacationers often avoid renting EVs.
Critics argue that the EU's green ambitions are placing heavy strain on the automotive sector and broader economy. Car manufacturers are under pressure to increase EV sales or face penalties, while investing billions into battery production, charging networks, and electricity grid upgrades. The transition also threatens jobs: Stellantis recently warned it may shut down factories if it can't meet EU targets, and former EU commissioner Thierry Breton has estimated that the shift to EVs could eliminate up to 600,000 jobs.
To remain competitive with automakers in China and the U.S., manufacturers are calling for government subsidies and additional state support.
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