European carmakers shift focus to corporate fleets and defense vehicles

A study of 29 European countries shows that corporate vehicle fleets are rapidly greening. Between 2022 and 2024 the share of diesel cars in fleets fell sharply, while electric models now account for roughly 40 % of new registrations, cutting average fleet CO₂ emissions by up to 30 % in sectors such as construction, energy and chemicals.

At the same time, major European automakers are increasingly turning to the defence market to offset weaker passenger‑car sales. BMW, Mercedes‑Benz, Renault, Volkswagen and others are developing military‑grade versions of existing models, collaborating with defence firms to create drone‑defence platforms, mobile command centres and hardened transport vehicles. The defence business currently contributes about 1 % of revenue but is seen as a growth area that could sustain factories and jobs amid declining civilian demand.