By breaking the transition into four auditable steps: a vehicle-by-vehicle eligibility audit based on actual use, a decision based on full TCO over 5 to 7 years, a gradual rollout aligned with your lease or replacement cycles, then continuous management of compliance and operational indicators. No vehicle is replaced until its electric equivalent covers its actual usage profile. The transition follows your fleet's natural replacement rhythm, with no disruption for drivers or operations. Fleeti runs all four steps with you.

A vehicle's electric eligibility is measured on its actual use, not statistical averages. Three criteria matter: the maximum daily mileage observed over the last 12 months (not the average, which hides peaks), the trip profile (urban, suburban, long-distance motorway), which determines real battery consumption, and access to compatible charging (depot, driver's home, along the route). For urban company cars and daily-use service vans, eligibility often exceeds 60% of the fleet. For long-distance sales staff, the decision is tighter and depends on the models available with sufficient real-world range.

In France, companies with more than 50 employees and a fleet of more than 100 light vehicles are subject to two mechanisms. The mobility orientation law of 24 December 2019 sets the targets: 15% low-emission vehicles in 2026, 40% in 2027 and 70% in 2030. The annual incentive tax (TAI), introduced at the end of 2024 (articles L.421-99-1 to L.421-99-9 of the tax code), turns the target into a financial penalty per missing vehicle from 2026. Annual reporting is mandatory. Low-emission vehicles include fully electric vehicles (BEV), plug-in hybrids that meet emission conditions (PHEV) and hydrogen vehicles.

Combustion and electric should never be compared on purchase price or monthly lease alone, but on full TCO over 5 to 7 years. Six items count: lease or depreciation, energy (electricity is 3 to 5 times cheaper per kilometre than diesel in urban use), maintenance (much lower thanks to no engine oil and regenerative braking), tax (EV bonus, 70% benefit-in-kind allowance for clean vehicles capped at €4,582 until 31 December 2027, incentive tax), charging costs (on site, at home, public) and residual value. For most urban and suburban uses, electric TCO is lower than combustion by the end of the contract. On long motorway journeys, the gap narrows or even reverses.

Missing greening quotas exposes the company to the annual incentive tax (TAI, articles L.421-99-1 to L.421-99-9 of the French tax code), in force since the end of 2024. The rate follows a known schedule: €2,000 per missing vehicle in 2026 (for the 2025 financial year), €4,000 in 2027, €5,000 in 2028 and beyond. The penalty is capped at 1% of turnover generated in France. Beyond the direct cost, non-compliance can lead to exclusion from public contracts and reputational risk, since annual reporting is public. Unlike the former LOM mechanism, the TAI applies to the entire fleet, not just replacements. A managed transition always costs less than three years of accumulated TAI.

This page has helped you structure your business electric fleet transition. Once the pathway is decided and the first vehicles to replace are identified, Fleeti runs your electric fleet day to day: OEM manufacturer API connection, real-time tracking of range and battery state of charge, charger and charging card management, home charging reimbursement, and built-in benefit-in-kind calculation with the 70% allowance for clean vehicles. For the detailed tooling, see the Fleet Electrification feature page.

Three categories of vehicle count as low-emission under the LOM law and the incentive tax, but their relevance for business fleets differs significantly. A BEV (Battery Electric Vehicle) is fully battery-electric: zero emissions in use and the best TCO for urban and suburban use, but real-world range depends on conditions (climate, trip profile) and requires structured charging infrastructure. A PHEV (Plug-in Hybrid Electric Vehicle) combines a combustion engine with a smaller rechargeable battery (40 to 80 km in all-electric mode): it offers maximum flexibility for long-distance sales staff, but its real CO2 benefit depends entirely on drivers' charging discipline. Usage studies show that PHEVs not charged regularly use more fuel than an equivalent combustion vehicle. Plug-in hybrids qualify under the incentive tax if they meet emission conditions, but rules may tighten for PHEVs in the coming years because of the gap between theoretical (WLTP) and real-world emissions. For most fleets, the rational choice is to favour BEVs where usage allows and keep optimised combustion vehicles for very high-mileage profiles where no electric equivalent exists yet.