Corporate fleet electrification represents a significant economic and climate opportunity for Europe but barriers must be addressed to unlock full potential, a new report finds.

Electrification is both environmentally and economically compelling, but structural barriers remain

Analysis by EY and Eurelectric reveals that transitioning Europe’s corporate fleets could unlock up to €246bn (£214bn) in cumulative operating cost savings by 2030. It also estimates that full fleet electrification could reduce up to one billion tonnes of CO2 emissions by 2030.

The Fleet Forward: Powering the Transition to Electric Mobility report highlights that the economic case for fleet electrification is “compelling”, and operating expenditure advantages are already visible across key fleet segments.

For cars and light commercial vehicles, EVs can deliver “meaningful” per-kilometre operating cost savings compared with internal combustion engine equivalents, particularly where depot or home charging dominates. Electric trucks can also achieve lower operating costs on defined routes where charging strategy and CO₂-based tolling frameworks align.

But the report finds that total cost of ownership is still burdened by several structural constraints given the “nascency” of this new ecosystem and the ongoing change process. And it warns that upfront cost disadvantages, residual‑value risk, fragmented policy frameworks, and grid bottlenecks are slowing investment decisions into BEVs.

The authors say the scaling fleet electrification will depend on coordinated action across the ecosystem to remove these barriers

Constantin M. Gall, EY global aerospace, defence & mobility leader, said: “The report shows that fleet electrification is already delivering operating‑cost advantages in many fleet segments; however, total cost of ownership is still burdened by several structural constraints given the nascency of this new ecosystem and the ongoing change process. Upfront cost disadvantages, residual‑value risk, fragmented policy frameworks, and grid bottlenecks are slowing investment decisions into BEVs. The ability to address these barriers will determine how quickly fleet electrification can scale.”

The report calls for coordinated action across the ecosystem.

Fleet operators must align vehicles with real duty cycles and maximise depot-based smart charging, which the report identifies as a key lever to reduce energy costs and improve operating margins.

On the OEM side, the report says manufacturers must narrow upfront price gaps, improve battery transparency and strengthen residual value confidence through buyback programs and standardised data.

And it wants policymakers in Europe to provide stable, multi-year fiscal and regulatory certainty, while grid operators and energy providers must accelerate connection timelines and invest in anticipatory capacity to support electrified depots and charging corridors. Financiers and leasing providers must scale bundled and risk-sharing models that reduce balance sheet exposure.

Kristian Ruby, secretary general of Eurelectric, said: “In the EU, 6 out of 10 new vehicles are sold to fleet owners, so the potential to save money and emissions is enormous. A well-designed fleet initiative can boost demand for BEVs to the benefit of European Industry and energy independence”

The report highlights that progress is real and the economic case is strengthening, but unlocking the full value of fleet electrification depends on practical coordination across industry, energy and policy actors.

The report also looks at proven successes in electrification, such as the UK’s use of a low and predictable Benefit-in-Kind tax trajectory that makes EVs the most attractive choice for company car drivers.

The full EY-Eurelectric report is online here.