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Company cars: how European governments are subsidising pollution and climate change

Company cars are vehicles owned by companies or other organisations - not by individuals - and they represent the main market share for new cars in Europe. T&E has commissioned the fleet market research firm Dataforce to analyse the corporate market in EU27+UK. Its report, available below, looks into the corporate registrations for the car market and its effects on Europe’s climate ambitions. The briefing summarises the findings and provides additional analysis and recommendations for lawmakers at national, EU and city levels. The massive corporate fleet subsidies explain why almost 6 out of every 10 new cars sold today in Europe are registered through the corporate channel, with some countries, like Germany or Poland, going beyond and reaching up to 70% of new cars. Company cars drive on average 2.25 times further than private cars, they disproportionately contribute to road transport pollution. While representing 3.7% of the total vehicle fleet, the 10 largest leasing companies alone account for 8% of car CO2 emissions in Europe. Their fleets, which total close to 10 million cars, emit 44.3Mt of CO2 each year. And European governments are effectively subsidising the pollution of corporate fleets to the tune of €32 billion per year.