Aligned with the objectives of the energy transition, the increased penetration levels of electric vehicles as part of the electrification of economy, especially within the framework of local energy communities and distributed energy resources, are crucial in shaping sustainable and decentralized energy systems. This work aims to assess the impact of escalating electric vehicles’ deployment on sustainable local energy community-based low-voltage distribution networks. Through comparative analyses across various levels of electric vehicle integration, employing different charging strategies and system management approaches, the research highlights the critical role of active system management instruments such as smart grid monitoring and active network management tools, which significantly enhance the proactive management capabilities of distribution system operators. The findings demonstrate that increased electric vehicle penetration rates intensify load violations, which strategic electric vehicle charging management can significantly mitigate, underscoring the necessity of load management strategies in alleviating grid stress in the context assessed. This study highlights the enhanced outcomes derived from active system management strategies which foster collaboration among distribution system operators, demand aggregators, and local energy communities’ managers within a local flexibility market framework. The results of the analysis illustrate that this proactive and cooperative approach boosts system flexibility and effectively averts severe grid events, which otherwise would likely occur. The findings reveal the need for an evolution towards more predictive and proactive system management in electricity distribution, emphasizing the significant benefits of fostering robust partnerships among actors to ensure grid stability amid rising electric vehicle integration.