“Forcing all companies to rely entirely on electric cars by 2028 is not the best idea the European Commission has ever had--the environmental benefit will be nothing compared to the negative impact on the economy.” , director of institutional relations at Arval, minces no words on his Linkedin account. He is referring to a public consultation, launched by the European Commission, that could bring forward the deadline for banning combustion-powered fleets by seven years (from 2035 to 2028). Like Leaseurope, the European Federation of Leasing Associations, Wagner supports keeping the original date in order to let the sector adapt properly.
“Leaseurope has welcomed the fact that a target has been set,” said the federation in a press release from 9 February and referring to the 2035 deadline. “This sets a clear goal for the sector to work towards. It will enable the market to match EV availability with sector vehicle demand. Similarly, public and private charging infrastructure should be further developed to meet vehicle use cases and use patterns. Each of these factors needs to be in equilibrium, driven primarily by market factors but supported by enabling policy, taxation, funding, operational and demand incentives for new and used vehicles alike, notably in non-mature markets.”
The federation adds, however, that “the imposition of arbitrarily set mandatory fleet targets” across Europe--i.e., moving up the deadline--would be unwise. “We anticipate that this will lead to many unintended consequences, not least the perverse incentive to retain ICE vehicles for longer. Any such piece of regulation may turn out to be counterproductive towards the European Union’s goals on reducing greenhouse gas emissions.”
In Luxembourg, the transition towards greener fleets is notable, with more and more electric vehicles (EVs). “Business in the first few weeks of the Autofestival confirms our customers’ desire to electrify their fleets, which is in line with our fleet now being more than 50% electrified--well ahead the Luxembourg market,” says Frédéric Henry, sales director of Leasys Luxembourg.
, managing director of Arval Luxembourg, adds: “This is a key moment for all players in the automotive sector. There was covid, but excitement is returning somewhat.”
Government grants for electric vehicles are valid until June and can be combined with offers from brands and rental companies. Waiting times are furthermore short (under two months) currently, thanks to large stocks.
An extra helping hand
Leasys, jointly owned by Stellantis and Crédit Agricole Consumer Finance, is leading the way on the percentage of its fleet that is electric: 41% (as of 2023). For its part, Arval--part of BNP Paribas Group--is coming up quickly behind, reaching 33% at the end of last year.
The two companies offer operational leasing solutions, facilitating access to sustainable mobility with a range of other services (charging points, insurance, vehicle maintenance, etc.) Arval focuses on customised support, offering leasing-related services for companies and individuals, now including bicycle-leasing. “In our case, we give our customers a helping hand on electric incentives in addition to the government incentives provided under the PNEC [Luxembourg’s integrated national energy and climate plan; editor’s note],” says Bourgois.
Clean mobility is clearly the watchword of this day and age: “We have an innovative, multi-brand approach, offering all models and all engines in terms of passenger cars and commercial vehicles, with a focus on technologies that promote sustainable mobility,” says Henry.
Arval used the Autofestival to advertise its ecological efforts: “Our aim is to promote BEV (full electric) vehicles. Hybrids were only an intermediate stage and are no longer given as much prominence as they once were,” says Bourgois.
When contacted, Athlon and KBCLease did not respond to our requests for interviews.
This article in Paperjam. It has been translated and edited for Delano.