Cars have long been a cornerstone of Europe's economic strength. However, today the continent's automotive industry is under pressure, as trade disruptions, rising energy costs, raw material shortages, and shrinking demand for European cars converge. To protect Europe's industrial backbone, we must make electric mobility accessible to all Europeans by boosting demand through a bold commitment to social leasing.

 Nokia Wikidata 

Some in the European automotive industry still pin their hopes on ever-more efficient combustion engines to secure their future. Yet, history shows the danger of such a path of dependency: Nokia once dominated the mobile phone market but failed to respond to the iPhone revolution. We must ensure that our car manufacturers don't fall into the same trap.

 Ursula von der Leyen Wikidata   European Commission Wikidata 

Europe stands at a crossroads. The race is on to put green, European-made, and affordable electric vehicles (EVs) on our road – before Chinese EVs seize the market entirely. The European Commission recognises this urgency. In her State of the Union address, EU Commission president Ursula von der Leyen announced a forthcoming 'small affordable cars initiative', creating a new 'e-car' category. It is a clear sign of the times.

The race is on to put green, European-made, and affordable electric vehicles (EVs) on our roads – before Chinese EVs seize the market entirely.

This shift in focus is highly welcome. Today, it is bankers, consultants, and lawyers who benefit most from tax breaks and subsidies. For many other Europeans, however, an EV still remains out of reach — especially for working people who would benefit the most from affordable clean mobility: farmers, social care workers, and factory workers.

 S&D Group Wikidata 

That's why the Socialists and Democrats (S&D) Group in the European Parliament is pushing for a European Social Leasing Plan — so that clean mobility is not a privilege for the few, but a right for all.

Our European social leasing plan

The concept is straightforward: make EVs affordable for low- and middle-income households through a modest monthly leasing fee. A points-based system taking into account income, family size, place of residence, and commuting needs would guarantee fairness.

To qualify, EVs would need to meet the highest social and environmental standards. In practice, this means only EU-made vehicles would be eligible. In doing so, Europe not only supports its citizens, but also strengthens its industry and supports its workers.

Member states don't need to wait for permission to start. In their social climate plans, they are already required to submit a list of measures to target transport-poverty directly. One obvious solution lies in social leasing.

Yet, we need action on a European scale. By pooling their efforts, member states could once again mandate the commission to negotiate a European deal with manufacturers, tailored to each country's needs but backed by the strength of collective demand.

Three birds with one stone

A recent study by the Oeko-Institut shows that from 2026 to 2032, social leasing could support up to three million households in just a few member states. Scaled across the EU over a decade, that figure could surpass ten million households.

The benefits are threefold. Our automotive industry becomes more competitive, Europe takes a decisive step towards its climate goals, and citizens gain access to affordable mobility options.

By creating additional and stable demand for affordable EVs, Europe can fight transport poverty, advance its climate commitments, and ensure that the next generation of cars is proudly built in Europe.

All of this has a knock-on effect on the second-hand car market. By expanding access now, we can accelerate the growth of a healthy, affordable second-hand market, bringing electric mobility within reach of even more Europeans.

A European promise

Clinging to combustion engines offers nothing but false hope and risks blocking the development of new and innovative players. By contrast, a European Social Leasing Plan could be the catalyst for the growth of our industries of tomorrow.

Social leasing delivers on all fronts. By creating stable demand for affordable EVs, Europe can fight transport poverty, advance its climate commitments, and ensure that the next generation of cars is proudly built in Europe.