Euro 7: real impacts on the availability of company cars in 2025-2027

Euro 7 is more than just "another emission standard". Although it keeps exhaust emission limits for cars and vans similar to Euro 6, it tightens up measurement rules, lifetime checks and adds completely new areas - brake dust, tyre wear and battery requirements. The result? In 2025-2027, manufacturers will be preparing for new type approvals, which will have a real impact on model availability, delivery dates, pricing and company fleet planning.

In this article you will find:

• Exactly what Euro 7 changes (without unnecessary "legalese"),
• the timeline and risk windows for orders 2025-2027,
• the impact on TCO, CAPEX/OPEX and residual values,
• and practical solutions on how the business can ensure mobility (including flexible AVIS products).

What is Euro 7 and why is it important for company fleets

Euro 7 is a European regulation for the type approval of vehicles focusing on:

• Exhaust pollutants (NOx, PM/PN, etc.),
• non-exhaust emissions (brakes, tyres),
• durability (lifetime emission performance),
• in-service monitoring (more data and controls),
• battery durability (for BEVs and PHEVs).

Euro 7 vs. Euro 6 in practice (for M1 and N1)

For the corporate customer, one thing is key to know:

• Euro 7 for cars and vans does not dramatically change the exhaust limits themselves, but it does change "how" and "how long" they are checked.

This means that the pressure shifts from a one-off test to:

• Longer durability and guaranteed emission functionality,
• more sensors/OBD/monitoring,
• and new limits for brakes (and gradually for tyres).

When will Euro 7 really start

The timeline is crucial for availability planning:

Key dates for cars and vans (M1 and N1)

• 29/11/2026 - Euro 7 will start to apply to new M1/N1 vehicle types (new models and new type approvals).
• 29.11.2027 - Euro 7 will apply to all new M1/N1 vehicles placed on the market (registration/sales/entry into service).

Key dates for heavy vehicles (M2/M3/N2/N3)

• 29.5.2028 - new types (HDV).
• 29.5.2029 - all new (HDV).

For fleets, the 2026-2027 window is the most important as manufacturers will be "flipping" models to new approvals, changing trims, and prioritizing production.

Why Euro 7 will affect the availability of company cars as early as 2025-2027

Although the obligation for all new M1/N1s does not come until the end of 2027, the market will start to react sooner.

1) Retyping and homologation = fewer combinations, longer lead times

In practice, this often means:

• Narrowing the range of engines and equipment (fewer configurations = easier approval),
• temporary "stopwatches" on some versions (especially marginal motorisations),
• shifting capacity to facelifts/new generations that already count on Euro 7.

What this will do to the fleet:

• For companies that renew their fleet on a 36-48 month cycle, delivery times will start to deteriorate just as orders for the 2026/2027 vintages are closing.

2) Rising production costs and pressure on price lists

Euro 7 brings additional components and testing (monitoring, sensors, brakes, durability). Manufacturers and supply chain will translate this into:

• Higher price lists,
• higher package premiums (safety/ADAS/monitoring),
• and often into "bundling" (less cheap basics).

In the cost debate, significantly different estimates have emerged in Europe:

• Industry studies for ACEA talked about ~2,000€ per car/delivery (ICE), for HDV up to ~12,000€,
• while the Commission's initial estimates were lower.

What this will do to the fleet:

• Higher CAPEX (when buying) or higher monthly cost (when financing/leasing),
• pressure on budgets and renewal approvals,
• and demand for more flexible solutions (short/long term rentals, operating leases with easier switching between types).

3) "Non-exhaust" emissions: brakes and tyres are changing vehicle choice

Euro 7 introduces for the first time limits for brake dust (PM10) also for cars and vans.

Example of limits (PM10 brake emissions) in the standard cycle:

• 3 mg/km for passenger cars and most plug-in electric vans (PEVs) ( M1/N1 except N1 Class III),
• 7 mg/km for most other powertrains (M1/N1 except N1 Class III),
• for N1 Class III (large vans) a higher limit applies: 5 mg/km (PEVs) and 11 mg/km ( other powertrains).

What this will do to the fleet:

• Manufacturers will address brake systems (materials, covers, filtration),
• some fleet categories (heavier vehicles, vans, higher payloads) may be more sensitive to modifications.

4) Durability and monitoring: changing the 'risk profile' of residual values

Euro 7 tightens requirements on how long vehicles have to meet parameters. For M1/N1 longer mileage and time horizons are being worked with (e.g. 160,000 km/8 years as "main lifetime" and follow-up period).

What this will do to the fleet:

• At residual values (RV), the perception of risk may change for some motorisations,
• companies will compare TCO and the "certainty" of the service/insurance component more.

Risk map 2025-2027: what can happen in the market

Year 2025: manufacturers' preparation and "pre-Euro 7" pricing

Typical signals:

• Restricting configurations (lower stock levels in some versions),
• Higher stock volatility (manufacturers shifting support between models),
• Growing importance of 'readily available' vehicles.

Recommendation for fleet manager:

• Review the renewal roadmap for the 2026-2027 vintages now,
• Set 2-3 alternative models for each key category (A/B plan),
• count on a higher importance of operational and rental solutions.

Year 2026: critical period before Euro 7 launch for new types (29/11/2026)

Typical risks:

• "tipping over" of models to new approvals,
• shifting production slots to facelift/new generations,
• longer lead times for fleet orders.

Recommendation:

• For orders with delivery in H2/2026 to H1/2027, include a buffer (time reserve),
• if you have critical functions (sales, service, logistics), prepare a bridge plan.

Year 2027: mandatory for all new M1/N1 from 29/11/2027

Typical risks:

• Some older engine types/versions will be discontinued (or become more expensive and rare),
• pressure on availability of light commercial vehicles (N1),
• Differences in availability by brand (early adopters gain an advantage).

Recommendation:

• Provide an alternative source of mobility for key segments (vans, 7-9 seaters, specific adaptations).

How to prepare: fleet planning checklist for CFO and fleet manager

1) Do a "Euro 7 readiness" fleet audit

Answer:

• Which vehicles are we renewing in 2026-2027?
• Do we have a dependency on 1-2 models (single point of failure)?
• Where are we at risk of failure (vans, special trims, 4x4, automatic)?

2) Recalculate TCO with two scenarios

• Scenario A: higher prices + longer lead time
• Scenario B: part of the fleet goes into rental/leasing with flexibility

Include the following in the TCO:

• Residual value risk,
• availability of service capacity,
• impact on productivity (vehicle downtime is a real loss).

3) Diversify mobility resources (not just "purchase")

A practical mix that works under uncertainty:

• Short-term rentals (peak, seasonal, replacements),
• Long term rental / MaxiRent (3-24 months) as a bridge between deliveries,
• Operating lease with predictable monthly cost,
• flexi lease for projects and logistics.

4) Contractually insure availability

• Framework agreements per category (not just a specific model),
• SLAs on replacement vehicles,
• Clear replacement rules for late deliveries.

Practical solutions for businesses: where AVIS makes sense

When the market is volatile, companies that have a Plan B are more likely to win. This is where the scope for product mix comes in.

AVIS MaxiRent - long-term lease (3-24 months)

Suitable when:

• You are waiting for delivery of new vehicles,
• you want to bridge a project/seasonal peak,
• you don't want to deal with financing and vehicle management.

Principle: you pay the rent, you fill up, the rest is handled by the provider (servicing, insurance, etc.).

AVIS Lease - operating lease and predictable costs

Suitable when:

• CFO needs a stable OPEX,
• you don't want to carry residual value risk,
• you want "mobility as a service" (service, insurance, tyres, assistance in a package).

AVIS Van Rental - when N1 is critical (projects, logistics)

Suitable when:

• deliveries are unavailable or have long lead times,
• need to increase capacity quickly (weeks/months),
• you want to minimize downtime during a breakdown.

Trends 2025-2027 that will shape accessibility

1) Faster move away from 'marginal' combustion versions

Manufacturers will invest heavily in:

• High volume sales models,
• hybrid solutions,
• and EV platforms.

2) More pressure on delivery and utility fleets

N1 is vulnerable to:

• Payload and real load,
• braking emissions and wear and tear,
• and monitoring requirements.

3) More data and transparency (EVP, monitoring)

Euro 7 strengthens access to information on the environmental profile of the vehicle.

Practically, it can bring:

• More stringent fleet KPIs (consumption/energy, emissions, battery health),
• pressure on driver behaviour and internal rules.

Investment view: what Euro 7 can do to residual values (RV)

For CFOs, the key question is: what happens to the value of today's Euro 6 vehicles?

Possible scenarios:

• Short term (2025-2027): Euro 6 will still be dominant, RVs may hold value (especially with a shortage of new vehicles).
• Medium term: with tightening urban rules (LEZ) and increasing pressure on PM/NOx, some diesel portfolio may become riskier.

Practical strategy:

• Don't tie yourself to a single powertrain,
• track real TCO (not just purchase price),
• for critical roles, prefer solutions where you bear less RV risk (operating lease/rental).

FAQ - Frequently Asked Questions (People Also Ask)

1) When will Euro 7 for cars and vans start?

For new M1/N1 vehicles from 29/11/2026 and for all new M1/N1 vehicles from 29/11/2027.

2) Does Euro 7 automatically mean more expensive cars?

Increased development, testing and component costs will typically be reflected in prices - not always directly, but through equipment, packages and availability of configurations.

3) Will Euro 7 also affect electric cars?

Yes. Euro 7 also addresses braking emissions (also for EVs) and introduces battery durability requirements.

4) What will Euro 7 do to the availability of supplies for companies?

In the 2026-2027 transition period, N1 may be vulnerable to limited production and retooling. Companies should have alternatives ready (rental, flexi leasing, framework categories).

5) Does it make sense to order a Euro 6 vehicle in 2026?

Yes, as long as it is a model that is still in production and has a realistic delivery date. However, it should be taken into account that after 29/11/2027 new vehicles must already comply with Euro 7.

6) What is the quickest way to reduce the risk of fleet unavailability?

Diversify sources: a combination of operating leases, long-term rentals and short-term replacements tends to be the most resilient to supply shortfalls.

Summary / TL;DR

• Euro 7 for M1/N1: new types from 29.11.2026, all new from 29.11.2027.
• In 2025-2027 the market will react earlier: homologation, model changes, longer lead times.
• New areas added: brakes (PM10), tyres, monitoring, batteries.
• Expect pressure on prices, equipment and availability - especially for vans.
• Best defense is a mix of solutions: leasing + long term rental + short term bridge.

Keywords and entities (used in the article)

Main KW: Euro 7, car availability, fleet planning, EU regulations

Related KW and phrases: Euro 6, type approval, homologation, M1, N1, M2/M3/N2/N3, emission limits, NOx, PM10, PN10, brake dust, tire wear, non-exhaust emissions, WLTP, RDE, OBD, OBD, OBM, OBFCM, Environmental Vehicle Passport (EVP), battery durability, lead time, TCO, CAPEX, OPEX, residual value (RV), operating lease, long term lease, van lease

Entities/institutions: European Commission, European Parliament, Council of the EU, EUR-Lex, ACEA, Frontier Economics, ICCT, EEA (European Environment Agency), OECD, AVIS, AVIS Lease, AVIS MaxiRent, AVIS Van Rental

Conclusion

Euro 7 is a "silent" change that will not be about one number in the catalogue, but about availability and planning. For fleets, it certainly won't be enough to just pick a model - delivery risk, TCO and flexibility will need to be managed.

Want to develop a fleet renewal plan for 2026-2027?

• We'll suggest a mix of solutions (operating lease, long-term rental, short-term replacements).
• We will also ensure mobility during supply disruptions (especially in the N1 segment).

👉 Contact AVIS and let's set up a "Euro 7-ready" fleet planning together.