'Completely Misses the Point:' Germany Slams the EU's Gas Car Rental Ban Idea

The European Union wants to force rental car companies to buy EVs from 2030, but criticism is already mounting.

2023 MG MG4 Electric in European specification exterior charging port door open

Adrian Padeanu

By: Adrian Padeanu

Jul 23, 2025 at 3:00am ET

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The European Union remains committed to banning the sale of new gasoline and diesel vehicles starting in 2035. In the meantime, it has floated a new idea to fast-track the demise of combustion engines by requiring car rental companies operating in the EU to purchase only EVs from 2030. The proposal hasn’t been finalized yet, but as you can imagine, criticism is already mounting. The most vocal opponent so far is German Chancellor Friedrich Merz.

According to Automotive News Europe, Merz said the proposal “completely misses the point of the current joint needs we have in Europe. We must not allow it to be destroyed by focusing on technologies that might not be market-ready enough by a given date for one to rely exclusively on that single technology.”

Bild was the first to report on the EU’s latest controversial plan to accelerate EV adoption. The German newspaper says the regulation could be presented by the end of this summer, before heading to parliament for approval. In the meantime, the proposed ban on gas-powered rentals is being discussed with car manufacturers as part of an “impact assessment,” according to a European Commission spokesperson.

While the decision isn’t set in stone, it underscores the EU’s commitment to phasing out gasoline and diesel cars sooner rather than later. If enacted, the measure would deal a significant blow to car rental companies. Bild quotes a Brussels politician warning that the ban could affect up to 60% of the new car market.

Sixt board member Nico Gabriel paints a similarly grim picture: “Vacationers will hardly use rental cars anymore.” The proposed deadline would affect not just rental companies but also large corporations, prompting Gabriel to predict that “consumers will practically no longer be able to lease vehicles.”

Temporary Solution?

If the 2030 ban goes through, what then? Rental firms and corporations might rush to buy more gas cars before the cutoff, stretching their internal combustion fleets a few extra years. But that would only be a short-term fix if the EU’s broader 2035 ban on new combustion car sales remains in place.

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For city driving, vacationers might not mind using an EV. But on longer trips, finding a charger in rural areas could prove frustrating. There's also the issue of limiting consumer choice and having to pay more to rent an electric car versus a comparable gas model.

Should the proposal gain approval, the impact on tourism would be immediate, and the blow to the auto industry would be substantial. Without steady demand from rental fleets, automakers might be forced to scale back combustion engine production years ahead of the 2035 deadline.

Sources: Bloomberg News / Automotive News Europe, Bild

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