Core Viewpoint - The EU's ambitious "2035 ban on fuel vehicles" has faced ongoing criticism from industry and member states, with potential adjustments to the proposal expected on December 10, including electric vehicle purchase quotas for companies and a relaxation of the ban [1][3]. Group 1: EU Proposal and Industry Response - The EU Commission plans to mandate the electrification of the rental and corporate vehicle market by 2030, with 60% of new cars sold in Europe being for corporate fleets, which account for 70% of new vehicle emissions [3][4]. - There is significant opposition from member states like Germany and Italy, leading to a potential reduction in the proposed quotas for corporate fleets below 100% [3][4]. - German officials, including Chancellor Merz, have expressed strong opposition to a one-size-fits-all quota for corporate fleets, emphasizing the need for flexibility in transition targets [5][6]. Group 2: Challenges and Market Impact - Analysts warn that without adequate charging infrastructure and consumer demand, the proposed electrification plan could slow down the renewal rate of corporate fleets and disrupt the car rental model [4]. - The EU aims for at least 50% of corporate fleet vehicles to be electric by 2027, a target considered aggressive and potentially challenging for the market [4][6]. Group 3: Political Dynamics and Future Regulations - The EU is currently revising its ambitious climate goals, including the planned ban on new fuel vehicles starting in 2035, amid significant internal debate and pressure from member states and industry groups [7][8]. - The latest draft of vehicle emissions regulations no longer includes a commitment to phase out fuel engines by 2035, reflecting the shifting political landscape and industry pressures [8].