344,000 jobs and 18,000,000,000 euros in Europe by 2030: the impact of shifting from gasoline and diesel to electric cars

23/10/2026 11:00

Updated to

23/10/2026 11:00

The shift from gasoline and diesel cars to electric vehicles not only represents a technological change for Europe’s automotive industry but could also present an opportunity to create jobs and strengthen battery manufacturing on the continent, according to a recent study by Transport & Environment (T&E).

The organization estimates that accelerating the electrification of corporate vehicle fleets could generate up to 344,000 additional jobs in the European Union by 2030 and attract an extra 18 billion euros in investments.

Corporate fleets as a catalyst for Europe’s industry

According to T&E’s analysis, the key is to combine mandatory electrification targets for large corporate fleets with a tax incentive policy that favors only low- or zero-emission electric vehicles manufactured in Europe. This would allow leveraging corporate demand to boost European production, strengthen the supply chain, and compete with China.

The Clean Corporate Vehicles Regulation stipulates that 45% of new passenger car registrations in large corporate fleets must be electric by 2030, but the agency notes that under the most ambitious scenario, 69% of new cars purchased by large corporate fleets would be electric by that date. If this occurs, the estimated economic benefits would rise from 28 billion to 48 billion euros, while investments would increase from 20 billion to 38 billion euros. Moreover, even in a moderate scenario, the study predicts the creation of 196,000 additional jobs.

Sofie Grande y Rodríguez, head of T&E’s clean fleet policies, argues that “company cars are the fastest way to turn Europe’s transition to electric vehicles into European jobs. Legislators have the opportunity to make regulations on corporate vehicles a key driver of competitiveness for Europe’s automotive industry.”

“Lowering manufacturing requirements in the EU would eliminate incentives for car manufacturers to locate production here. Equally important for protecting jobs at risk is keeping 2028 as the enforcement date,” she adds.

Germany and Poland among the biggest beneficiaries

The organization warns that the debate now focuses not only on determining the pace of growth for electric mobility but also on whether the European Union is willing to compete with China. Failing to capitalize on the demand potential created by these regulations would mean missing a historic opportunity, especially since European manufacturers could expand their electric vehicle production capacity to protect jobs.

Volkswagen illustrates this situation, as it plans to cut 35,000 jobs by 2030, but the new regulations could alone create up to 56,300 additional direct jobs at the manufacturer during the same period, according to the study’s estimates.

The impacts would not be limited to automobile assembly plants; it would also drive investment throughout the supply chain, from battery manufacturing to its components. Germany would be the country with the highest increase in jobs, adding 134,000 positions, accounting for 39% of the total expected for the EU. Poland, on the other hand, could create an additional 38,500 jobs, as battery cell production capacity could rise from 31 to 81 GWh by 2030, more than doubling the current level.

Grande and Rodríguez state: “Electrifying the fleets of large companies is essential to secure Europe’s electric vehicle value chain and reduce our dependence on dominant global suppliers. Europe already assembles most of its corporate electric cars. What it needs now is guaranteed demand so that the battery factories announced here can actually be built.”