by Europe May Restrict the Rental of ICE Vehicles by 2030
According to new data, European car rental companies may be forced to switch to electric cars in as little as five years. The German publication Bild reports that after 2030, rental agencies will only be able to purchase electric vehicles. Given that the average service life of a rental car is 1-2 years, rental in Europe could become fully electric by 2032.
Impact on the Market
While regular buyers will be able to choose between ICE vehicles and electric cars until 2035, rental companies are likely to lose this option much earlier. As sources report, the European Commission is preparing a draft law that will prohibit large corporations and rental agencies from purchasing vehicles with internal combustion engines from 2030.
Agencies like Europcar and Sixt will only be able to buy electric vehicles to renew their fleets, – states the Bild report.
This decision could significantly accelerate the EU’s transition to “green” technologies, as sales to rental companies account for about 20% of all new cars in Europe. In the long term, this will also limit choice on the used car market, as fewer ICE vehicles will enter secondary circulation.
So far, the European Commission has not provided official comments on the specific timelines for the implementation of the new rules. However, if the proposal is approved, it could lead to a reduction in the production of ICE models even before the official 2035 ban due to economic impracticality.
The transition to electric vehicles for rental companies is just one step in the EU’s global strategy for decarbonizing transport. At the same time, this creates new challenges for manufacturers who are already facing changes in the labor market due to the reorientation towards electric vehicles. Moving away from traditional technologies is proving more difficult than expected, especially in a sector where cost and service availability are key factors for customers.
