For the first time, fully electric cars have become the largest group within Belgium’s company car fleet—and the shift is happening significantly faster than in neighboring countries such as the Netherlands, Germany, and France.
New data from the National Social Security Office (RSZ) show that electric vehicles accounted for 37.2% of all salary cars in the fourth quarter of 2025, overtaking both combustion-engine cars (31.8%) and hybrids (31.0%). The figures mark a clear tipping point in a country where company cars play a central role in the automotive market.
The shift has been remarkably fast. Just three years earlier, fewer than 23,000 electric company cars were on Belgian roads. By the end of 2025, that number had surged to more than 213,000, a more than ninefold increase.
The transformation is even more striking when looking at new orders: around four in five newly registered company cars are now fully electric, while purely gasoline or diesel models have almost disappeared from order books.
No coincidence
This rapid electrification is no coincidence. Belgium has effectively turned company cars into a policy lever for decarbonization. A tax reform introduced under former finance minister Vincent Van Peteghem has gradually phased out the fiscal deductibility of combustion and hybrid vehicles, while keeping electric cars close to fully deductible.
At the same time, rising CO₂ contributions have made polluting vehicles significantly more expensive for employers. Given typical leasing cycles of three to four years, the impact of these measures is now fully materializing in fleet renewal decisions.
The result is a market where the choice has become almost binary. For most companies, opting for anything other than a fully electric car no longer makes financial sense.
Consultants and fleet managers report that exceptions for high-mileage drivers still exist, but are becoming increasingly rare as charging infrastructure expands and vehicle ranges improve.
Standing out sharply
Belgium’s trajectory stands out sharply when compared to neighboring countries. The Netherlands is often seen as a frontrunner in electric mobility, with a strong charging network and high EV adoption rates.
Yet its transition is more balanced across private and corporate buyers, and less driven by company cars alone. Germany, Europe’s largest car market, has seen electric vehicle adoption slow after subsidy cuts and still relies heavily on plug-in hybrids in corporate fleets.
France, meanwhile, has focused more on incentivizing private consumers, resulting in a steadier but less fleet-driven transition. Luxembourg shares Belgium’s company car culture, but lacks the same aggressive fiscal push and has not yet reached a similar tipping point.
Global context reinforcing shift
At the same time, the broader energy context is reinforcing the shift. Fuel prices across Europe have surged again following the escalation of the Iran conflict, with gasoline prices up around 15% and diesel up roughly 30% since late February, while oil has traded above $100 per barrel.
The disruption of global supply routes, including the Strait of Hormuz, has pushed gas and oil prices higher and increased volatility in European energy markets. This renewed price pressure strengthens the business case for electrification, insulating companies from fossil fuel price shocks.
Looking ahead, upcoming EU carbon pricing mechanisms—particularly the extension of emissions trading to road transport later this decade—are expected to put additional upward pressure on gasoline and diesel costs, further widening the total cost-of-ownership (TCO) gap in favor of electric vehicles.
What sets Belgium apart is the sheer weight of company cars in its overall car market. Salary cars account for a large share of new registrations, meaning that changes in corporate taxation can reshape the entire vehicle mix in a relatively short time. In effect, Belgium has created a fast lane for electrification that bypasses the slower adoption patterns seen among private buyers.
Market distortion
There are, however, broader implications. While the company car system is accelerating the transition to zero-emission vehicles, it also raises questions about equity and market distortion.
The benefits of electrification are disproportionately concentrated among employees with access to salary cars, while private buyers face higher upfront costs and fewer incentives.
At the same time, the rapid electrification of corporate fleets is likely to have a delayed but significant impact on the second-hand market. As large volumes of leased electric vehicles return after typical three- to four-year cycles, a growing supply of used EVs will become available at more accessible price points.
This could play a crucial role in democratizing electric mobility, offering private buyers a more affordable entry into the EV market and accelerating adoption beyond the corporate segment.
Still, the direction of travel is clear. With the majority of new company cars already electric, Belgium’s fleet will continue to go green rapidly in the coming years as older vehicles are phased out. The RSZ data confirm that 2025 was not just another year of growth, but a structural turning point.
In a European landscape where electrification often progresses unevenly, Belgium offers a striking example of how targeted fiscal policy can accelerate change. Whether other countries will follow the same path—or choose a more gradual approach—remains to be seen. For now, Belgium has firmly positioned itself at the forefront of company car electrification.
