Business fleets: The strategic lever for the electric transition
Business fleets are set to spearhead the transition to electric vehicles in Europe. Stéphane Séjourné, European Commissioner for Industrial Strategy, recently highlighted their key role in this transformation. According to him, 58% of new vehicles are currently purchased by companies, public authorities and institutions. This statistic reveals considerable potential for accelerating the widespread adoption of electric vehicles.
To exploit this strategic lever, the European Commission plans to introduce incentives aimed at "greening fleets as quickly as possible". These measures, the details of which will be announced on 26 February 2025, are designed to create a "demand shock" for European carmakers. The aim is twofold: to stimulate the automotive industry while accelerating the ecological transition.
This strategy has several advantages:
- It enables us to effectively target a major segment of the automotive market.
- It encourages the creation of a second-hand market for electric vehicles, making them more accessible to private individuals.
- It contributes to reducing CO2 emissions in the transport sector, in line with the European Union's climate objectives.
By focusing on business fleets, Europe hopes to create a ripple effect that will benefit the entire electric vehicle market, while supporting the automotive industry in its transition to more sustainable mobility.
A demand shock to save European manufacturers
Faced with the challenges facing the European automotive industry, the European Commission is preparing an ambitious initiative to stimulate demand for electric vehicles. Stéphane Séjourné, European Commissioner for Industry, has announced an action plan to create a "demand shock" for European carmakers. The plan, details of which will be unveiled on 26 February 2025, will focus primarily on business fleets, which account for 58% of new vehicle purchases in Europe.
The aim is twofold: firstly, to speed up the transition to electric vehicles by encouraging companies and public institutions to make their fleets greener, and secondly, to support European manufacturers in the face of international competition, particularly from China. This strategy should not only stimulate sales of new electric vehicles, but also help to create a second-hand market that is more accessible to private individuals.
By focusing on professional fleets, the European Commission hopes to create a knock-on effect that will enable the ambitious targets set for 2035 to be achieved, while preserving the competitiveness of the European automotive industry.
Greening fleets: New European incentives
Stéphane Séjourné, the European Commission's Executive Vice-President for Prosperity and Industrial Strategy, has announced an ambitious plan to stimulate demand for electric vehicles, with a particular focus on corporate fleets. The initiative, which will be unveiled on 26 February 2025, aims to create a "demand shock" for European carmakers.
The main measures envisaged include
- Financial incentives to accelerate the transition of fleets to cleaner vehicles
- Administrative simplification to make it easier for businesses to adopt electric cars
- Sector plans with simplification bills specific to the automotive sector
The aim is to rapidly green Europe's fleets, given that 58% of new vehicles are purchased by companies, public authorities, town halls and states. This strategy should not only stimulate the production of electric vehicles, but also create a robust secondary market, making these vehicles more accessible to private customers in the long term.
Second-hand market: The key to democratising electric cars
The second-hand market plays a crucial role in the democratisation of electric vehicles in Europe. According to the experts, this segment is essential for making electromobility accessible to a wider public. European Commissioner Stéphane Séjourné recently stressed the importance of this market in the European Union's strategy to accelerate the adoption of electric vehicles.
The second-hand market currently represents three times the volume of the new car market, and is the main source of purchases for private individuals. This dynamic is particularly important for electric vehicles, as it creates a more affordable offer for consumers. Indeed, the rapid turnover of corporate fleets (3 to 5 years) should provide the second-hand market with more affordable, recent electric vehicles.
The figures already show a positive trend:
- In the third quarter of 2024, sales of used electric vehicles reached 36,384 units, an increase of 22% on the previous quarter.
- Electric vehicles accounted for 2% of total transactions on the second-hand market in the first quarter of 2024.
- 87% of used electric vehicles are less than 5 years old, compared with just 32% for internal combustion cars.
These data indicate that the second-hand market is becoming an important lever for the transition to electromobility. By facilitating access to more affordable electric vehicles, this segment could play a decisive role in achieving Europe's sustainable mobility objectives.
Summary table
| Aspect | Details |
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| Business fleets |
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| European strategy |
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| Measures envisaged |
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| Objectives |
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| Advantages of the strategy |
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| Second-hand market |
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| Key figures (2024) |
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| Expected impact |
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Conclusion
In conclusion, 2025 looks set to be a decisive turning point for the electric vehicle market in Europe. The European Commission's ambitious plan, focused on business fleets, promises to create a "demand shock" that will benefit carmakers. This strategy aims not only to accelerate the transition to greener mobility, but also to support the European automotive industry in the face of growing international competition.
By stimulating the market for new and used electric vehicles, Europe hopes to make these vehicles more accessible to private individuals, while helping to achieve its ambitious climate targets for 2035. However, the success of this initiative will depend on its effective implementation and the ability of manufacturers to offer attractive and affordable models to meet this increased demand.
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