The EU Commission has not yet finalized its decision on climate proposals for company cars, with ongoing discussions and impact assessments.

In 2024, the EU sold approximately 10.6 million vehicles, highlighting the scale of potential market impact.

Opposition to the plan comes from the German Federal Ministry of Transport and the German Automotive Industry Association, emphasizing concerns over charging infrastructure and criticizing the feasibility of the mandates.

The Commission is expected to present the new regulation in late summer 2025, with approval needed from both the EU Council and Parliament.

The proposal, as reported by 'Bild am Sonntag', aims to be introduced in late summer 2025 and would affect a significant portion of the new car market.

Industry leaders like Nico Gabriel of Sixt warn that the ban may be unrealistic, potentially deterring tourists and complicating vehicle leasing due to insufficient charging infrastructure across the EU.

The European Commission plans to prohibit the purchase of combustion engine vehicles for company fleets and rental cars starting in 2030, allowing only emissions-free vehicles such as electric cars.

Reports indicate that the EU may mandate rental car providers and large companies to purchase exclusively electric vehicles beginning in 2030.

This proposed ban on combustion engine vehicles for rental and corporate fleets is expected to impact around 60% of new car sales, with the remaining 40% primarily affecting private consumers.

Industry experts warn that such regulations could lead to higher rental car prices and potential challenges for consumers.

Any legislation introduced will require approval from a majority of the European Parliament and EU member states before it can be enacted.

Critics, including EU official Markus Ferber, argue that the plan could lead to only electric vehicles being purchased to meet quotas, raising concerns about practicality and consumer choice.