T&E report: leasing companies key to EV affordability in EU

Transport & Environment (T&E) released a new report titled "How Leasing Companies Can Become a Key Driver of Affordable Electric Cars in the EU." This report emphasises the pivotal role leasing companies could play in accelerating the transition to electric vehicles (EVs), particularly for the used car market in Europe. Key insights from the report include:
  1. Significance of the Used Car Market: Nearly 80% of EU citizens purchase cars from the used market, making it a crucial segment for low and middle-income families. The report highlights the importance of electrifying the used car market to make EVs accessible and affordable for all EU citizens.
  2. Role of Leasing Companies: Leasing companies, which own large fleets of vehicles for a period of three to four years before they enter the used market, are uniquely positioned to drive the transition to electric. By switching their fleets to electric vehicles, they can significantly influence the electrification of the used car market.
  3. Current Status and Potential Impact: Leasing companies are not leading the transition towards electric vehicles, with their uptake of battery electric vehicles (BEVs) only aligning with the broader market trends. However, if these companies adopt more aggressive electrification strategies, they could introduce an additional 18 million BEVs into the used car market by 2035, which would be a 50% increase compared to a business-as-usual scenario.
  4. Affordability Concerns: A significant portion of the additional used BEVs, possibly 8 million by 2035, could cost below €10,000 – the average price middle-income households spend on a used car. This affordability factor is crucial in ensuring the inclusivity of the transition to electric mobility.
  5. Recommendations: T&E suggests that leasing companies should adopt ambitious targets for transitioning to electric vehicles, with a phase-out date for polluting vehicles set for 2028. National policymakers are urged to reform company car taxation to incentivise electric cars and set binding electrification targets at the EU level.
  6. Broader Implications: The report underscores the significant role leasing companies play in shaping the used car market and, by extension, the overall transition to sustainable transport in the EU. Their proactive approach as green leaders is essential for fostering an affordable, accessible, and environmentally friendly used car market.

In conclusion, T&E calls on leasing companies to step up as green leaders, accelerating the electrification of their fleets, which would not only benefit the environment but also make electric cars more affordable for a wider range of consumers in the EU.

Source: How leasing companies can become a key driver of affordable electric cars in the EU | Transport & Environment

Source: How leasing companies can become a key driver of affordable electric cars in the EU | Transport & Environment
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