Alphabet C-level insights – Are governments giving up on electrification?

The journey towards widespread electrification is a cornerstone of the EU’s climate strategy, promising to reshape mobility and significantly reduce emissions. With bold targets like 30 million zero-emission vehicles on the roads and a robust network of 3.5 million charging stations by 2030, the European Union has set the stage for a transformative decade. However, cracks are emerging as economic pressures and infrastructure shortfalls challenge this vision. For fleet managers, navigating this complexity demands careful planning, adaptability, and a clear view of where to invest – and how to stay ahead of the curve. 

Slowing momentum – the three main factors
Alphabet has determined three main issues which are currently roadblocks on the route to widespread electrification: “What we hear from our customers closely aligns with the challenges we identified in our latest EFEM findings”, explains Jesper Lyndberg, CEO of Alphabet International. “The biggest problem is the lack of Europe-wide consistency in terms of charging infrastructure. Almost one quarter of all European charging stations are currently located in the Netherlands – one of the smallest countries and markets in the EU. At the same time, major markets like Germany are struggling to ensure sufficient coverage, particularly in rural areas. For companies operating in multiple regions, this underlines the importance of carefully planning charging strategies by location and use case – and not assuming uniform access.”  

Associated cost is another major hurdle, even in first-mover markets like the Nordics and the Netherlands. “The price of EVs and the required investment in charging infrastructure at home and at work remain too high for small and mid-sized businesses. This sentiment is further intensified by a significant knowledge gap around the costs of fleet electrification”, Lyndberg continues. This highlights the urgent need for better guidance, transparency, and tools to help companies of that size understand the real costs and potential ROI of electrification. 

A third concern is technological uncertainty. Among all markets observers can find anxiety and sometimes a lot of misinformation, too, about fluctuating energy prices and concerns around battery life, residual values, and the speed of recharging. Fleet managers can address these concerns by staying informed, choosing reliable OEMs, and working with partners who provide transparent lifecycle planning and vehicle data. 

Electrification as part of the political agenda – from the top to the bottom? 
Compounding these challenges is the gradual reduction of subsidies and other financial incentives for EV adoption in several European countries. Markets like Sweden, Germany, and the Netherlands are scaling back tax breaks and grants designed to encourage the uptake of EVs. This shifting policy landscape means businesses can no longer rely solely on public support. Forward-thinking fleet managers must plan for long-term electrification strategies that remain viable even in less supportive conditions. 

The impact is already visible. According to Jonas Eriksson, Country Manager Alphabet Sweden: “Sweden has been an early adopter when it comes to EVs, largely due to government incentives. After the subsidies were largely removed for all new vehicle orders starting November 2022, we experienced a drop of around 20% in new EV registrations compared to the year before”. This poses a worrying decline for a market previously considered a leader. These premature reductions risk derailing governments’ own electrification and climate targets. To avoid losing ground, fleet operators should proactively explore flexible solutions, such as modular leasing, or tap into consulting services that can help balance upfront costs with long-term savings. 

Mike Wetherell, CEO of Alphabet Netherlands, sees a similar picture in the Dutch market: “Volatile government regulations, the rollback of subsidies, and overall political unpredictability are making it harder for our customers to commit to large investments. These shifting conditions create hesitation – and that’s one of the key reasons we’re seeing a plateau in xEV registrations, even in markets that were once leading the way.”

Corporate fleets as a catalyst for electrification 
In today’s challenging landscape, corporate fleets have emerged as a key driver of electrification. Without progress at the corporate level, national efforts to transition to sustainable mobility would stagnate, as private consumers remain hesitant about the shift. Leasing and mobility companies play a pivotal role in overcoming these barriers by providing businesses with the tools and expertise to make the transition smoother: “Today more than ever, we are aware of the importance of guiding and supporting companies in the adoption of e-mobility through the offer of an entire ecosystem of services which, starting from consultancy, includes every aspect linked to sustainable mobility. For example, charging stations, charge cards, add-on mobility services, and much more”, says Marco Girelli, CEO of Alphabet Italy. 

A shared responsibility 
As governments step back from subsidies and other incentives, private enterprises have an even greater role to play. Fleet managers can keep the momentum for e-mobility alive by embracing flexible leasing, electrified fleets, and expert consulting to show that electric vehicles can succeed in real-world conditions. As corporations electrify their fleets, they not only reduce emissions but also normalise e-mobility, build trust and demonstrate its viability to the wider market. Collaboration between policymakers, businesses, and mobility providers is essential to overcome barriers and achieve Europe’s sustainability goals. While challenges persist, corporate fleets are proving that progress is possible and can collectively pave the way for a more resilient and sustainable mobility future. 

Discover the previous editions of our C-Level Insights series: 

• Unpacking the quartet of trends shaping the digital future of mobility – Delve into the four key trends shaping the future of mobility – data, digitalisation as a hygiene factor, the need self-service solutions, and the rise of AI – with insights from C-level leaders from Austria, Switzerland, Italy, and Spain. 
• From carrot to stick – Explore Europe’s shift from incentives to regulation in EV adoption – “from carrot to stick” – with insights from C-level leaders in the Netherlands, Austria, the UK, and the CEO of Alphabet International. 
• The evolving role of a fleet manager – Find out why fleet managers are emerging as strategic architects of the mobility transition.