Leaders Push Back the EU 2030 Ban on Gasoline Rental Cars

As the European Union accelerates its transition toward electric mobility, a controversial new proposal is igniting debate across the continent. The EU is reportedly considering a regulation that would ban the sale of new gasoline and diesel vehicles to rental fleets starting in 2030 — five years ahead of the already contentious 2035 combustion engine phase-out for private consumers. This latest move, though not yet finalized, is sparking strong opposition from political leaders, automakers, and car rental firms alike.

Key Points at a Glance:

• EU proposes banning new gasoline and diesel rental cars by 2030
• Move intended to speed up electric vehicle (EV) adoption before 2035 deadline
• German Chancellor Friedrich Merz opposes the plan, calling it premature
• Rental industry warns of major impacts on tourism and consumer choice
• Measure could affect up to 60% of new car registrations in Europe
• Final decision expected to be presented before end of summer

A Bold Step Toward Electrification

The European Commission’s proposal marks another significant step in its broader climate agenda. While the 2035 ban on combustion engine sales for all new cars remains the cornerstone of EU climate policy, the idea of accelerating this deadline for rental and corporate fleets signals an attempt to fast-track EV integration across high-volume buyers.

The logic is simple: rental fleets cycle through vehicles more quickly than private buyers. Pushing these companies to electrify earlier could have a rapid, visible impact on emissions, while stimulating demand for EVs at scale. But the proposed regulation — still in its early discussion stages — is already drawing fire.

Political Resistance from Germany

Leading the opposition is German Chancellor Friedrich Merz, who has strongly criticized the proposal. In statements reported by Automotive News Europe, Merz argued that the regulation “completely misses the point of the current joint needs we have in Europe.” He emphasized that depending entirely on EVs by 2030 would be risky, especially given questions about infrastructure, range, and affordability.

Merz’s remarks reflect a broader concern in Germany, where the automotive industry remains one of the economy’s most vital pillars. The suggestion that rental firms — a key segment of the new car market — would no longer be able to buy internal combustion vehicles has raised alarms about premature disruption.

Rental Companies Warn of Harsh Consequences

The proposed measure could significantly disrupt the rental market, which accounts for a large portion of annual new car purchases in Europe. According to reports from German media outlet Bild, a Brussels official warned that as much as 60% of new car sales could be affected.

Nico Gabriel, board member at Sixt, a major European rental company, warned that vacationers “will hardly use rental cars anymore” under such a policy. He further predicted that leasing options for corporate fleets and consumers would shrink dramatically, citing price gaps between electric and gasoline models and inadequate infrastructure in many parts of Europe.

Read Also : EU May Ban Gasoline Car Rentals by 2030

Potential Short-Term Loopholes and Market Reactions

If the EU proceeds with the 2030 rental fleet ban, companies may look for temporary workarounds. One likely strategy would be a buying surge ahead of the deadline, with firms stockpiling internal combustion vehicles to extend their usability beyond 2030. However, this would only delay the inevitable shift, especially with the 2035 blanket ban still looming.

The proposal also threatens to accelerate the collapse of combustion engine production, as automakers would lose a key source of demand earlier than planned. Without the steady bulk orders from rental companies, ICE vehicle manufacturing could be wound down sooner, further pressuring factories and suppliers tied to legacy technologies.

Urban vs Rural Divide: The Infrastructure Challenge

For city-based rentals and short-term urban trips, EVs are increasingly practical. However, for long-distance travelers, tourists, or business users heading into rural areas, the limitations of current charging infrastructure remain a sticking point.

This geographic imbalance could make EV-only rental fleets unpopular or unworkable in some regions. Critics argue the proposed rule risks limiting consumer choice, increasing costs for travelers, and undermining sectors like tourism that rely heavily on flexible mobility.

Specifications Table: EU Fleet Electrification Proposal

What Comes Next

The EU’s push to electrify rental fleets ahead of the 2035 mandate underscores its commitment to climate goals — but also reveals the deep fault lines between political ambition and practical readiness. The success of such a regulation depends not only on car availability but also on the readiness of Europe’s charging network, affordability of EVs, and acceptance by both consumers and businesses.

If the proposal is approved and implemented, it would mark one of the most aggressive shifts in European automotive regulation to date. But if stakeholders continue to resist, the EU may be forced to revise or delay its timeline.

In either case, the outcome will help shape the future of car rentals, fleet operations, and the broader EV market across Europe.