Electric company cars surge as German firms shift fleets

German firms embrace electric and used cars for company fleets by 2030

The End of the Combustion-Engine Company Car?

For twelve years, Ralf Brunner has driven a company car. Every three years, renewal talks have come up—"there was always a new model, always a petrol or diesel," says the sales representative. (His real name is different; ahead of this year's negotiations with his employer, he prefers not to appear in the media.) "This time, my employer is only offering me a used electric estate car."

The Volkswagen has 40,000 kilometers on the clock, and there's a subsidy for a home charging station in Brunner's garage. But Ralf is hesitant. He wonders: Is the battery still reliable? Will the range be enough? Is this even a proper company car?

Questions like Brunner's will soon confront more and more employees eligible for company cars or fleet vehicles—not just in Germany, but worldwide. The Arval Corporate Vehicle and Mobility Barometer 2026, a survey by BNP Paribas's fleet management subsidiary based on interviews with over 10,000 fleet managers across 33 countries, paints a clear picture: corporate fleets are becoming more second-hand, more electric, and more flexible. Ralf's situation is no exception—it's the new normal.

Nearly half of German companies have already integrated used cars into their fleets, with another 39 percent planning to do so. At the same time, retention periods are increasing: passenger vehicles now remain with companies for an average of 5.5 years—one year longer than the previous standard.

The same trend applies to light commercial vehicles. For employees with company cars, this means the chances of getting a brand-new model at the next upgrade are shrinking—and the powertrain will increasingly be electric. Soaring fuel prices and new subsidies for electric vehicles are likely to accelerate this shift dramatically.

Those taking over a used EV naturally have concerns about the battery. Katharina Schmidt, Head of Consulting for Energy Transition at the Arval Mobility Observatory and a member of the executive board, dismisses these fears: "Worries about range loss in used electric cars are unfounded. Our data shows that after roughly 70,000 kilometers, battery capacity remains at around 93 percent."

Used EVs could thus "play a key role in driving the transformation of corporate fleets faster and more cost-effectively." Someone taking over an electric car with 50,000 or 60,000 kilometers on the odometer is, as a rule, getting a fully functional vehicle—while saving their employer money that can be invested elsewhere.

For company car drivers, e-mobility is no longer a niche issue. Some 70 percent of German firms already use electric powertrains—13 percentage points above the European average. By the end of the decade, fleet managers plan to make one in three company cars fully electric.

Another 18 percent will be plug-in hybrids—after all, even high-mileage employees need quick range in remote areas to reach their next client. The share of pure petrol and diesel models will drop to 38 percent by then.

Anyone still driving a combustion-engine car should prepare for a change. Regulatory pressures are also mounting: 30 percent of surveyed companies cite the expansion of low-emission zones as a concrete driver of their electrification strategy—a sharp increase from the previous year. But the biggest everyday challenge for company car drivers remains charging. Two-thirds of German firms report a lack of charging solutions, particularly for employees' homes.

The problem isn't stingy bosses: 88 percent of employers are willing to financially support home charging stations, according to the study. So if you're offered an electric company car and don't yet have a wall box at home, it's worth proactively talking to HR. The funding is usually there—it just isn't always offered upfront.

By the way, it doesn't always have to be a car. Nearly all the executives surveyed offer their employees at least one mobility solution. Germany leads Europe in this area—especially when it comes to bike leasing: one in five companies provides a company bicycle, more than double the number in Belgium, the next country on the list. And instead of a small van, cargo bikes are increasingly making their way into workplaces: half of all firms plan to purchase them within the next three years, while 17 percent already use them.

So if you haven't been able to get a company car in the past, you might soon negotiate a tax-advantaged pay raise in the form of bike leasing, a ridesharing card, or a flexible mobility budget for the Deutschlandticket, Bahncard, and other options. According to the study, many HR professionals are very open to these ideas—both to make their companies more sustainable and to attract and retain talent.

Those who understand these changes and their motivations can take full advantage of them: stronger negotiating power when switching vehicles, extra money through mobility budgets, and support for personal energy transitions. Saving on power—now that's not a bad starting point for negotiations.