The Transport Dispatch: on surging EV sales, new challenges ahead, and the EU’s corporate fleet mandate

Welcome to the first edition of the Transport Dispatch – our take on what will be important for the global shift to a clean transport future. From now, our transport experts will regularly share their insights and analysis from the frontline of the EV transition, and you’ll hear from partners and members of our influential EV100 network.

1) EV demand will continue to grow as fleets boost their transitions

2025 began with a lot of good news for the global EV transition. Telecoms multinational BT Group placed the UK’s largest EV order to date, bringing its EV fleet to 8,000. British outsourcing specialists Mitie added the 6,000th EV to their fleet. And Amazon ordered 200 electric trucks to be deployed across Germany and the UK. This is what ‘driving up demand’ looks like in practice.

Crunching the numbers for 2024, analysts reported record sales of EVs in countries as diverse as the UK, India, Belgium, the US, Norway, and, of course, China – where a quarter of all new cars were electric last year. Sales figures tell a very different story to the media narrative of a slowing transition.   

Globally, sales grew by 25% in 2024 compared to 2023. 

Corporate fleets are a key driver behind this growth. Forward-thinking companies know that decisive pioneers have the competitive edge. They see zero-emission vehicles as a future-proof technology that’s ready for mass adoption now.   

BT and Mitie are both members of EV100, Climate Group’s global network of corporate pioneers turning ambitious EV commitments into action. By decarbonising their fleets to a clear timeline, EV100/+ members are creating clear demand for market acceleration and policy leadership. And, with the majority of new vehicles purchased by businesses, today’s EV100/+ fleets supply the second-hand market of tomorrow.

There will inevitably be regional ups and downs, but as companies continue to drive change, making EVs more affordable for everyone, demand is likely to go only one way in 2025: up.

2) The landscape will be getting more complex – and more hostile

EVs are on route to becoming the new normal – but 2025 is going to be a challenging year for the global transition.  

The new US president has revoked an agreed 50% EV target for 2030 and taken the US out of the Paris Agreement. We are carefully watching his next steps and trying to understand the implications for our work.  

Germany has rolled back EV incentives – and there’s uncertainty on the direction the country will take after federal elections on the 23 February – while Italy continues to lead a revolt against the EU’s EV plans, with other Member States waiting in the wings.

We continue to engage with members and partners in Japan, where progress remains worryingly slow. ZEV sales declined in 2024 – making up less than 2% of new car sales. 

Meanwhile, incumbent automotive manufacturers are wrestling with the reality that future demand for vehicles will be for those that are zero emission – and that they are falling further and further behind on what’s happening in China.  

The route to long-term profitability and competitiveness for carmakers is clearly to be on the right side of this transition – investing in and manufacturing Zero Emission Vehicles at scale.  

But instead of keeping up with new rivals, many of which are moving at breakneck speed, some manufacturers in the EU have resorted to a narrative of “deep crisis”. Their ongoing lobbying takes aim at the EU’s agreed CO2 regulations and targets – threatening the essential regulatory framework European companies need to advance their EV transitions with confidence. Some manufacturers are loudly calling for fines attached to CO2 non-compliance to be scrapped.

That’s why, ahead of the Clean Industrial Deal later this month, the policy work we’re leading with the crucial support of our members is more important than ever.

3) The EU’s corporate fleets mandate is a key policy that needs support now

EV100 members are committed to electrifying their fleets by 2030. Many of them have long supported a legally binding corporate fleet mandate – EU legislation that would set a target for the purchasing and procurement of zero emission vehicles for all companies and put everyone on the same clear track towards clean transport.

The new EU Commission is expected to put such a proposal on the table, as part of its Clean Industrial Deal – to be published on 26 February.  

A legally binding corporate fleet mandate would be one of the most effective ways to accelerate Europe’s EV transition. It assures manufacturers that their supply will be met with strong demand, provides a huge boost to the second-hand market, and sends a clear signal that the EU is a key market for zero emission vehicles.  

The coming three weeks are crucial to make the case for the legislation. EV100 members can get involved here, and there’s more on becoming a member here.  

The importance of a collective corporate voice on the EV transition has been clearly demonstrated in the UK, where EV100 members have been speaking out in support of the ZEV Mandate, which requires carmakers to sell more EVs every year. A Government consultation on the 2030-35 phase of enforcing the world-leading legislation is due to end on 18 February.

We’ll analyse the outcome in our next Dispatch.

EV100 brings together corporate leaders that are turning ambitious EV commitments into action. By decarbonising their fleets to a clear timeline, companies send a powerful signal for market acceleration and policy leadership – driving wider change through the system by making EVs more affordable for everyone. 

Find out more and join