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

posted on 6/16/2025

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.
Jesper Lyndberg, New CEO Alphabet International

Slowing momentum – the three main factors

 

Alphabet has identified three main roadblocks to widespread electrification, as confirmed by their latest EFEM findings. Jesper Lyndberg, CEO of Alphabet International, states: “The biggest challenge is the lack of Europe-wide consistency in charging infrastructure. Nearly a quarter of all European charging stations are in the Netherlands, one of the smallest EU countries, while major markets like Germany struggle with sufficient coverage, especially in rural areas. Companies must carefully plan charging strategies by location and use case, rather than 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

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.”

Marco Girelli, CEO Alphabet Italy

Corporate fleets as a catalyst for electrification 

 

In today’s landscape, corporate fleets are a key driver of electrification. Without corporate progress, national efforts for sustainable mobility would stagnate, as private consumers remain hesitant. Leasing and mobility companies are pivotal in overcoming barriers by equipping businesses with the tools and expertise for a smoother transition. “Now more than ever, guiding and supporting companies in adopting e-mobility with a full ecosystem of services - from consultancy to charging stations, charge cards, and add-on mobility services - is crucial,” 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. 

 

Claudia Bauer

International Marketing, Communications Manager

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