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EU Urges Industry to Reconsider Aggressive 2035 EV Fleet Target

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  Published in Automotive and Transportation on Monday, December 8th 2025 at 14:08 GMT by Channel NewsAsia Singapore

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Industry Pushes Back on EU’s Ambitious Electric‑Vehicle Fleet Mandate

In a recent rallying cry from the automotive and mobility sectors, several major car manufacturers, rental and leasing giants, and industry associations have urged the European Union to reconsider its proposed mandatory electric‑vehicle (EV) fleet targets. The call, delivered through a coordinated statement released on 6 November 2024, argues that the current policy framework may be overly aggressive, financially unviable, and could stifle the very growth it intends to spur.

The EU’s “Fit for 55” Push

The European Commission’s “Fit for 55” package, unveiled in December 2023, sets a broad climate agenda that includes a target of cutting greenhouse‑gas emissions by at least 55 % by 2030 relative to 1990 levels. A key pillar of the plan is the rapid electrification of new passenger‑car fleets. Under the draft regulation, all new car sales in the EU would have to be zero‑emission vehicles (ZEVs) by 2035, and new light commercial vehicles would face similar deadlines.

The proposal, which was announced by Commission Vice‑President Iliana Ivanova in a statement that also cited the “Urgent need to move the market to zero‑emission mobility,” has been met with a mixture of support and concern. While policy makers emphasize that stricter targets are necessary to meet climate commitments, the industry representatives highlight practical hurdles.

Why the Industry is Cautious

1. Infrastructure Lag

“The current charging network is insufficient to support a rapid EV rollout,” said a spokesperson for the European Association of Vehicle Manufacturers (ANFAC). They pointed to the fact that, as of mid‑2024, there were only about 400,000 public charging points in the EU, a figure that will need to double or triple in the next decade to meet the proposed fleet targets. The infrastructure shortfall would disproportionately impact rural and low‑density regions, where car usage is higher and charging access lower.

2. Battery Supply and Cost

A common thread among the signatories is the concern over battery supply chain constraints. The EU’s battery‑capacity targets—aimed at producing 1.1 million tonnes of battery cells by 2030—are still deemed “incomplete” by industry leaders. “The supply of critical raw materials such as lithium, cobalt, and nickel remains uncertain, and scaling up production will require substantial investment,” said a senior engineer from Hyundai Motor Group.

In addition, battery cost forecasts suggest that it may take several more years for EVs to reach parity with internal‑combustion‑engine (ICE) vehicles in terms of total cost of ownership (TCO). While EVs are cheaper to run, their upfront cost is still higher for many buyers, especially in price‑sensitive segments.

3. Market Demand and Consumer Confidence

Industry analysts caution that consumer demand for EVs, though rising, still lags behind the aggressive timelines. “We have seen a strong uptake in premium segments, but the mainstream market remains largely ICE‑dependent,” noted an executive from Daimler AG. The statement also referenced a 2024 survey by the European Automobile Manufacturers Association (ACEA), which found that only 15 % of new car buyers in the EU are “actively looking” for an EV, compared to 55 % who are “open” but not ready to commit.

4. Financial Impact on Rental and Leasing Firms

Large rental groups such as Europcar, Hertz, and Enterprise have raised concerns about the financial burden of quickly transitioning entire fleets. The cost of retrofitting or replacing existing vehicles, combined with the need for in‑house charging solutions, can be prohibitive. “We are committed to sustainable mobility, but we need realistic timelines that allow us to spread costs over a longer horizon and avoid drastic disruptions to our business models,” said a senior director from Europcar.

Calls for a Phased Approach

Rather than a blanket mandatory target, the signatories advocate for a phased, incentive‑driven strategy. Suggestions include:

• Graduated Incentives: Increasing subsidies for EV purchases, offering tax breaks for fleets that meet certain electrification percentages.
• Infrastructure Grants: Directing public funds to expand charging networks, particularly in underserved areas.
• Research and Development: Encouraging public‑private partnerships to accelerate battery‑technology breakthroughs, such as solid‑state cells and cheaper cathode materials.
• Consumer Education: Investing in campaigns to build confidence in EV performance, range, and maintenance.

They also propose revisiting the targets to accommodate “regional disparities” and the varied pace of automotive production across the EU.

EU Response and the Way Forward

The European Commission has responded by acknowledging the “valid concerns” raised by the industry but reiterating its commitment to the climate goals. In a press release, the Commission emphasized that the targets were designed as “maximum ambitions” and that “policy tools will be adapted based on real‑world data and industry feedback.”

In the meantime, the EU is expected to open a consultation period in early 2025, inviting stakeholders to provide input on the regulatory framework. Industry leaders are likely to leverage this window to refine the policy, ensuring that it remains both ambitious and feasible.

Bottom Line

The automotive, rental, and leasing sectors are not opposed to EV adoption; they simply argue that the EU’s current mandatory fleet targets may be premature and risk undermining the very transition they aim to accelerate. By advocating for a more measured, incentive‑based approach that considers infrastructure, supply chain, consumer demand, and financial realities, the industry hopes to create a more sustainable pathway to a zero‑emission vehicle future.

The outcome of the forthcoming consultation will shape whether Europe can meet its 2035 zero‑emission fleet goal while maintaining a competitive, resilient automotive industry. The debate underscores a fundamental tension between urgent climate action and the practical realities of market transformation—a tension that will play out in the next few years as Europe seeks to balance ambition with achievability.