EU Plans to Ban Non-Electric Vehicles for Rental Companies by 2030

According to a report by Germany's Bild, the European Commission is formulating a plan to ban car rental companies and large enterprises from purchasing non-electric vehicles for their fleets starting in 2030. The report cites EU sources stating that under the proposed measure, companies such as Sixt SE and Europcar Mobility Group SA will only be allowed to procure electric vehicles. An EU parliament member mentioned that if the proposal is approved, it would affect 60% of the new car business. Bild reports that the European Commission plans to submit this proposal later this summer, which will effectively accelerate the EU's gradual phase-out of internal combustion engine vehicles, followed by submission for parliamentary review. This initiative marks a significant step for the EU in promoting green transportation and will have profound implications for the car rental industry. With the growing demand for electric vehicles, related infrastructure development and industry chain evolution will also face new opportunities and challenges. The EU has confirmed to Bild that it is developing new regulations but declined to disclose specific details. Currently, the EU plans to gradually ban the sale of internal combustion engine vehicles by 2035. After intensive lobbying from the automotive industry, the European Parliament approved a relaxation of some EU carbon emission standards for passenger cars and vans in May 2025, while still maintaining the core rule of banning fuel-powered vehicles from 2035. According to a study released by the EU Transport & Environment organization on July 8, if the EU adheres to its 2035 clean car goals and implements supportive transition policies, the EU automotive industry is expected to recover to an annual production level of 16.8 million units, reaching the peak level after the 2008 financial crisis. T&E pointed out that if the EU maintains its 2035 zero-emission vehicle targets and implements policies to boost domestic electric vehicle production, the automotive value chain's contribution to the EU economy will grow by 11% by 2035. However, T&E warns that if carbon reduction targets are weakened and there is a lack of comprehensive automotive industry policy support, the entire automotive value chain's contribution to the EU economy could decline by €90 billion (approximately $105.5 billion) by 2035.