The European Parliament has launched discussions on a proposal to eliminate tax breaks for corporate vehicles equipped with traditional internal combustion engines. Under the plan, the measure would take effect starting in 2028. Instead, future tax incentives would be directed primarily toward electric cars.
Advocates argue the changes would significantly speed up the shift of commercial fleets from petrol and diesel models to electric vehicles. This should boost demand for new EVs and increase the supply of used electric cars on the secondhand market.
However, experts warn the law would also bring negative consequences. It would put serious pressure on premium automakers that have traditionally focused on combustion engines, particularly Mercedes-Benz, BMW, and Audi. A shrinking market for these brands could lead to lower production volumes, job losses, and reduced profits.
