ICCT study:

Germany only in midfield when it comes to the electrification of company fleets

The study published by the International Council on Clean Transportation (ICCT ) at the beginning of October 2025 on the decarbonization of company fleets in Europe underlines their central role in the European transport transition. Company vehicles account for around 60 percent of all new registrations in Europe. Due to their generally higher annual mileage and short average service life, they represent a particularly effective lever for the electrification of road transport.

However, Germany only occupies a middle position in the study. While the German government promotes BEVs and grants tax benefits, for example through accelerated depreciation regulations and reduced taxation of electric company cars, the incentives lag behind those of countries such as Belgium or the Netherlands. For example, companies in Belgium benefit from significantly more attractive tax breaks for electric vehicles, while vehicles with combustion engines are increasingly disadvantaged there in terms of taxation. As a result, Belgium is now one of the leading countries in Europe in terms of the proportion of electric company cars. The Netherlands, France, Sweden and Denmark also have above-average electrification rates in their company fleets – clear evidence of the direct impact of targeted policy measures.

Company cars lower entry barriers for private users too

The ICCT study emphasizes that the decarbonization of company car fleets is not only a key contribution to climate protection, but also boosts the market for electric mobility as a whole. Companies that opt for BEVs early on indirectly accelerate the availability of used vehicles and thus lower the barriers to entry for private users.

Overall, the study recommends coordinating national tax and subsidy programs more closely, introducing binding EU-wide target quotas for zero-emission company vehicles and consistently driving forward accompanying measures such as the expansion of the charging infrastructure. By taking such targeted steps, Germany could reduce its backlog compared to pioneering countries and at the same time make an important contribution to achieving the European climate targets.

The most important findings of the study at a glance:

• Company cars dominate the new car market: they make up the largest share of new registrations and are often driven significantly more than private vehicles, making a switch to electric models particularly effective for decarbonization.
• Germany in the middle of the pack: In a European comparison, Germany has so far been in the middle of the pack. Although there are tax incentives for battery electric vehicles (BEVs), for example through more favorable depreciation and reduced company car tax, these have not yet reached the level of pioneering countries such as Belgium.
• Binding targets work: Statutory quotas for zero-emission vehicles can significantly accelerate the electrification of fleets because they give companies clear planning security.
• Used market effect: As company cars enter the used car market after three to four years, private households can also gain early access to comparatively affordable electric vehicles.
• Political measures are crucial: In addition to tax incentives, a well-developed charging infrastructure, clear interim targets and accompanying support programs are necessary to efficiently implement the transformation of fleets.

Comprehensive advice on all aspects of your electric car fleet

When it comes to the decarbonization of company fleets, we at MHC Mobility see ourselves as a leading car subscription provider with a special responsibility: by designing our offers and providing intensive advice on vehicles and funding opportunities, we can accelerate the introduction of zero-emission vehicles and make the decision for electric vehicles more attractive for companies. We therefore have a direct influence on the composition of the fleet and can make a noticeable difference to the transport transition.

Would you like to know what benefits the electrification of your fleet will bring for your company? Feel free to contact us. We will advise you without obligation and find the optimum solution for you.