Rapid transition to electric company cars could generate 344,000 EU jobs by 2030 - study

EU-wide electrification targets for large fleets, combined with limiting national fiscal benefits only to electric Made-in-Europe company cars, would bring 344,000 additional jobs and €18 billion in extra investment to Europe’s economy and automotive industry by 2030, according to a new T&E study. Even under a moderate scenario, 196,000 jobs would be created.

The Clean Corporate Vehicles Regulation requires 45% of new car sales in large corporate fleets to be electric by 2030. This establishes a minimum floor for fleet transition. Strictly limiting financial support for company cars from January 2028 (Article 4 of the Regulation) to vehicles that are low and zero emissions and Made-in-Europe triggers the biggest gains.

T&E analysis shows that in the strong scenario, where combustion cars are pushed out of company fleets much faster, 69% of new cars in large corporate fleets could be electric by 2030, generating 344,000 additional jobs. Economic gains could also jump from €28 bn to €48 bn, while investments could grow from €20 bn to €38 bn. Germany and Poland stand to reap the greatest benefits. Demand for additional jobs in Germany could rise by 134,000 (39% of the additional EU jobs), while Poland could capture 38,500 jobs more.

Sofie Grande y Rodriguez, Clean Fleets Policy Manager at T&E, said: “Company cars are the quickest way to turn Europe’s EV transition into European jobs. Lawmakers have the opportunity to make the company cars regulation a key driver of Europe's automotive competitiveness. Watering down its 'Made-in-EU' requirements would remove the incentive for carmakers to localise production . Equally important for securing at-risk jobs is keeping 2028 as the entry-into-force date.”

The question is no longer how fast e-mobility moves, but whether the EU is serious about competing with China, T&E warned. Failing to seize the demand potential of the regulation would be a historic misfire at a time when European carmakers could easily expand EV capacity to protect jobs. Volkswagen serves as a case in point: while the group plans to cut 35,000 jobs by 2030, the new regulation alone could generate up to 56,300 additional direct jobs at the automaker over the same period [1].

Beyond vehicle manufacturing, the regulation would drive investments across the entire electric vehicle supply chain. In Poland, battery cell production could more than double (31 GWh to 81 GWh) by 2030 and jobs could increase by 38,500, 82% of which would be in the battery sector [2].

Sofie Grande y Rodriguez added: “Electrifying the fleets of large companies is key to securing Europe’s EV value chain and reducing our dependence on dominant global suppliers. Europe already assembles most of its electric company cars. What it needs now is guaranteed demand, so the battery plants announced here actually get built. To stop losing ground to China on EVs, Europe must bet on Made-in-EU electric company cars”

NOTES TO EDITORS

[1] The Volkswagen case study uses strong scenario results.

[2] The Polish case study also uses strong scenario results.