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EU Proposal for Fuel Efficiency Standards for Rental and Leased Vehicles Commencing from 2030

EU Commission reportedly planning to implement a ban on fuel-powered engines for rental company and corporate vehicle fleets.

EU Regulation for Fuel Efficiency in Rental and Hired Vehicles Starting in 2030
EU Regulation for Fuel Efficiency in Rental and Hired Vehicles Starting in 2030

EU Proposal for Fuel Efficiency Standards for Rental and Leased Vehicles Commencing from 2030

The European Union (EU) is working on a new regulation that could significantly impact the automotive industry. According to reports, the EU Commission is planning to ban internal combustion engines for fleet vehicles from car rental companies and large businesses starting from 2030.

This potential ban, if approved, would affect around 60% of new car sales, as stated by a politician in Brussels. The EU Commission President, Ursula von der Leyen, announced plans for this new regulation.

The ban on internal combustion engines would mean that only electric vehicles will be allowed for purchase by companies and car rental providers. However, concerns have been expressed about the practicality of this ban, particularly regarding the lack of charging infrastructure across the EU.

Nico Gabriel, a board member of the car rental company Sixt, has criticized the planned ban as impractical, expressing concerns about the lack of charging stations and the potential impact on holidaymakers who rely on rental cars. He also mentioned that consumers may no longer be able to lease vehicles due to the ban.

The criticism from the business sector is not limited to Sixt. Rental car providers have also raised concerns about the potential increase in costs due to the ban on internal combustion engines. Markus Ferber, a EU MP from CSU, has written a letter to Commission President Ursula von der Leyen, calling for the withdrawal of the EU's plan to ban internal combustion engines for fleet vehicles from 2030.

Work on the new regulation is currently underway, but the EU did not comment on specific details regarding the new regulation. The approval of the EU Council and the EU Parliament is required for the new regulation to come into force. The EU Commission plans to present the new regulation as early as late summer.

Last year, 10.6 million vehicles were sold across Europe. If the ban on internal combustion engines for fleet vehicles comes into effect, the remaining market share would fall to private customers. However, the exact implications of this shift are yet to be seen.

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