By the end of 2024, eight out of ten new company cars in Belgium were fully electric, according to a study by human resources specialist SD Worx.
This represents a significant shift from previous years, where electric vehicles (EVs) accounted for less than 10% of new company cars in 2022.
The rapid transition to electric company cars is part of a broader effort to reduce carbon emissions, with the impact already noticeable in Belgium’s company car fleets.
The average CO2 emissions from these vehicles have dropped dramatically, now standing at just 14 grams per kilometer (g/km), a sharp contrast to the higher emissions of traditional petrol and diesel cars.
“The transition to electric vehicles is accelerating, and in the case of company cars, we are at cruising speed in greening. Employers are adapting their fleets to meet stricter federal regulations aimed at reducing carbon emissions,” said Veerle Michiels, a mobility expert at SD Worx.
This shift to electric vehicles has largely offset the higher emissions of diesel and petrol cars, which continue to see a steep decline. Diesel vehicles now account for only 2.5% of new company cars, while petrol and hybrid variants are also experiencing reduced demand.
In the last quarter of 2024, average diesel vehicles emitted 114 g/km of CO2, while petrol cars emitted 66 g/km.
SD Worx suggests that the financial attractiveness of petrol and diesel vehicles has significantly decreased due to changes in tax incentives.
“The decrease in emissions from company cars was expected, as cars emitting CO2 purchased after July 1, 2023, have become less financially attractive for employers.
The gradual reduction in expense deductions and the notable increase in ONSS solidarity contributions for these vehicles have played a significant role in this shift,” said Alexia van Zuylen, another mobility expert at SD Worx.
While the move toward electric vehicles is helping reduce CO2 emissions, it has come with a notable increase in spending by employers. In 2024, the median catalogue value of new company vehicles rose by 8.7%, reaching €43,800, up from €40,280 in 2023.
This increase reflects the higher cost of electric cars compared to traditional models, though many companies are willing to make the investment to comply with green policies and reduce their environmental footprint.
SD Worx also highlighted that the number of workers with company cars remains high, with estimates suggesting that one in seven workers (14%) in Belgium has access to a company vehicle.
As the trend toward electric company cars continues to grow, Belgium is on track to meet its sustainability goals, while also setting a precedent for other countries looking to reduce carbon emissions from corporate fleets.
The shift to greener vehicles signals a significant step forward in Belgium’s broader efforts to transition to a more sustainable economy.
