A New Eurelectric-EY Study Shows BEVs Offer 20-50% Lower Operating Costs for Europe’s Fleets

Fleet electrification is rapidly becoming one of Europe’s most powerful levers for cutting emissions, reducing operating costs and strengthening its industrial base. With corporate fleets representing around 60% of new vehicle registrations, the shift to electric mobility is central to Europe’s economic and climate ambitions. As global competition intensifies, particularly with China’s highly coordinated industrial strategies, Europe must scale fleet electrification to safeguard its competitive position. By providing predictable demand, corporate fleets can reinforce Europe’s automotive supply chains, accelerate innovation and help secure industrial leadership in zero emission mobility.

Developed in partnership with global consultancy firm EY, a new study by eurelectric explores the evolving landscape of corporate mobility. Drawing on industry knowledge, market data and cross-country analysis, the report looks at the challenges businesses face today, the benefits emerging from new operating models, and the practical insights organisations can learn from early adopters. It provides a clear, evidence-based view of how corporate transport can accelerate Europe’s shift to clean mobility and where action is most urgently needed.

Corporate fleet is the single most impactful segment for accelerating Europe’s transition to electric mobility. Fleet transport plays an outsized role in Europe’s mobility landscape. These cars, vans and heavy-duty models cover more kilometres, generate a significant share of road-transport emissions, and refresh their stock more frequently than private users. Businesses that switch to cleaner models can unlock substantial operating-cost reductions, while also supporting the wider energy system through managed charging and, in time, vehicle-to-grid services. The transition is therefore both a climate necessity and a strategic business opportunity.

Fleet vehicles generate 71% of new car CO2 emissions, meaning electrification delivers outsized climate impact relative to any other segment. Electric fleet vehicles already deliver around 20%-50% lower operating costs compared to internal combustion equivalents, and the gap continues to widen. EU mandates could boost demand for new electric cars by up to 50% by 2030, potentially unlocking more than 2 million additional EV sales.

2025 marked a decisive turning point, with BEVs overtaking petrol in December registrations for the first time. After a year of stagnation in 2024, Europe’s electric mobility market surged back: all major markets, Germany, France, the Netherlands, Belgium, Sweden and the UK, saw strong growth, driven by renewed purchase subsidies, the 2025 CO2 reduction target, the arrival of more affordable EV models, and national incentive schemes such as France’s social leasing programme. The continent’s charging landscape continues to expand rapidly, with more than 1.2 million public charging points now available. This growth is helping to support rising demand and improve access across regions, although deployment remains uneven and further investment will be needed to keep pace with electrification.

Economic performance remains the decisive factor for business adoption. Based on projected uptake, the transition of company-owned transport could generate up to 246 billion euros in operating-cost savings by 2030. These gains stem from lower energy expenditure, reduced maintenance needs, fewer taxes and tolls, and more efficient charging strategies. As smart and bi-directional charging mature, additional flexibility revenues could further strengthen the business case. By 2030, electrified corporate transport could substitute around 95 billion litres of diesel with 140 TWh of electricity, significantly reducing Europe’s fossil-fuel import bill and improving energy security. The climate impact is equally substantial: full electrification could avoid around one billion tonnes of CO2, equivalent to roughly 5% of projected EU and UK emissions over the same period.

The study examines three core segments: company cars, light commercial vans and medium to heavy-duty trucks, across several European markets. In every case, operators see clear running-cost advantages when switching to zero-emission models. For company cars, electric models already deliver a 10 to 20% operating-cost advantage when driven more than 25,000 km per year. In France, the gap reaches 33%, supported by lower electricity prices and favourable taxation.

For light commercial vans, the economics are even stronger. Electric vans can cut fuel expenditure by up to 60% and reduce maintenance costs by 20 to 30%. In France, they offer a 40% operating-cost advantage over diesel equivalents. For medium and heavy-duty trucks, the economics depend on route patterns and charging strategies, and while savings are emerging, targeted support is still needed. Long haul operations in France show a 14% reduction in running costs, rising to 16% on France-Germany routes and 5% on France-Romania corridors. Depot charging significantly improves the economics, and maintenance costs for electric trucks can be 30 to 40% lower than for diesel models.

Managed charging already enables operators to reduce costs by shifting consumption to off-peak hours and avoiding high-tariff periods. As bi-directional charging becomes more widely available, vehicles will be able to provide services back to the grid, generate additional revenue streams, support renewable integration and enhance overall system stability. Ultimately, fleet electrification will accelerate when electric vehicles deliver a clear, predictable and durable TCO advantage over diesel. For many high-utilisation corporate fleets, that tipping point is no longer theoretical; it is already here.

Despite strong momentum, four structural barriers still limit scale. Policy fragmentation and uncertainty slow fleet electrification through inconsistent incentives and shifting regulations across Europe. Infrastructure gaps remain a major constraint, with uneven charging deployment, slow permitting and insufficient local grid capacity for depot charging. Many fleet managers still lack clear guidance on how to run electric fleets effectively, and smaller operators and SMEs face additional financing constraints and greater exposure to residual value risk. Digital fragmentation limits the efficiency of electric fleets, with incompatible data systems making it difficult to integrate smart charging or optimise operations.

Corporate fleets representing 60% of new vehicle registrations in Europe can become the engine of transport electrification. The EU’s proposed fleet electrification mandates could drive demand for more than two million electric cars by 2030, nearly half the numbers needed to meet carmakers’ emissions targets. To turn this potential into reality, Eurelectric recommends adopting binding zero-emission vehicle purchase targets for corporate fleets, aligning national fiscal systems with decarbonisation goals, incentivising BEVs with bi-directional charging capabilities, enabling proactive grid planning and anticipatory investment, and maintaining ambition in key EU legislation to sustain market confidence and accelerate the transition.