Fleet electrification: numerous incentives call for tailored support

The French government continues to step up incentives for company vehicles to switch to low-emission mobility. Scales, taxes and new bonuses: everything is changing. In this period of change, Citroën sheds light on the solutions in place to help professionals choose their vehicles, along with the tools to optimise running costs, particularly for tradespeople and SMEs.

Understanding the tax issues of L.E.V. for companies

Switching to a low-emission fleet (L.E.V.) meets several objectives. The most important one is financial. Today, an electric vehicle with optimised management becomes more cost-effective than a combustion-engine vehicle after just 11,000 km of use per year. Beyond TCO (total cost of ownership), fleet electrification also contributes to CSR (corporate social responsibility), giving the employer brand a dynamic, positive image and meeting new commercial and economic criteria. Here is what is changing in France and how to make the most of the many advantages.

Certinergy bonus (CEE)

Since 1 July 2025, the ecological bonus has become the CEE bonus (energy savings certificates). It only applies to the purchase or lease of a new electric vehicle for more than one year. It is particularly advantageous for utility vehicles. For SMEs, tradespeople and retailers, the bonus is €560 for a passenger car (VP) and €4,900 for a utility vehicle (VU). For managers of large fleets (more than 100 vehicles), it ranges from €440 for a passenger car to €3,910 for a utility vehicle. Finally, for local authorities with more than 20 vehicles, it is €325 for a passenger car and €2,930 for a utility vehicle.

Malus

Electric vehicles and vehicles emitting less than 113 g CO2/km are exempt from the purchase malus (registration penalty). The rules will be tightened in the coming years, with the threshold falling to 108 g CO2/km in 2026, 103 g CO2/km in 2027 and 98 g CO2/km in 2028. As for the weight-based malus, hybrid vehicles are already subject to it from 1,600 kg, while electric vehicles are exempt until mid-2026.

TVS

The company vehicle tax (TVS) has been split in two: the tax on polluting emissions and the tax on CO2 emissions. Electric vehicles remain exempt from both. For hybrid vehicles, the emissions tax is €100 per year until 2027, compared with €500 for a combustion-engine vehicle. The CO2 emissions tax starts at €1 per gram from 10 g CO2/km and rises to €65 per gram from 171 g CO2/km.

Benefit in kind

To encourage employees to use an electric vehicle, the allowance rises from 50% to 67% (capped at €4,582 per year) when employees use a zero-emission vehicle with an eco-score above 60, meaning it is produced in Europe.

Depreciation

The depreciation ceiling for the deductible base is set at €30,000 for an electric model and €18,300 for vehicles emitting less than 50 g CO2/km. By comparison, it is only €9,900 for mainly combustion-engine vehicles emitting more than 160 g CO2/km.

LOM law

Although the French mobility law (LOM) has become advisory and non-binding for electrification when fleets are renewed, it maintains its obligations and incentives for charging infrastructure. Companies must install charging stations from 20 parking spaces, at a rate of one per 20 spaces. To make these installations easier, companies can receive a subsidy of up to 50% of the charging station price.

Local incentives

In some regions such as Hauts-de-France, Corsica and some overseas regions, company electric vehicles remain exempt from regional taxes at registration. Only the fixed fees remain: the €13.76 ANTS management fee and the €2.76 delivery fee. Some cities also offer reduced rates, or even free parking, for electric vehicles, which can quickly pay off for daily use.

Annual greening incentive tax (TAI)

Companies with more than 100 vehicles must declare a share of low-emission vehicles (electric or plug-in hybrid) in their fleet. The 15% rate in 2025 will rise in the coming years (18% in 2026, 25% in 2027, 30% in 2028, 35% in 2029 and 48% in 2030). Failing to meet this rate triggers a tax of €2,000 per vehicle corresponding to the gap with the targets. This tax will also increase, to €4,000 in 2026 and €5,000 from 2027, which is why it pays not to delay electrifying your fleet.

VAT

Beyond the lower running cost of electricity compared with fuel, VAT recovery also favours electric vehicles. It is 100%, compared with only 80% for petrol and diesel, a difference of 20 points.

There are a lot of tax advantages with electric vehicles […] electric is a matter of social responsibility, and the state is doing what it takes to support this electric transition.
Frédéric Bruschini - LEASYS

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Why SMEs need specific support

Incentives to switch to a low-emission fleet are increasingly numerous, but also increasingly complex. This transition also involves changing habits and planning new infrastructure. This technical, time-consuming situation raises many questions for SMEs, which do not always have a dedicated fleet manager or tax specialist.

Before the purchase

Needs and financing must be defined according to usage, especially daily mileage. The first step is choosing the right powertrain between plug-in hybrid and electric. The purchase must then be made at the right price, including all tax advantages, without missing any. The same goes for financing. Depending on cash flow or fleet expectations, several options are available, from outright purchase to lease with purchase option and long-term leasing. Each option has its own advantages.

At the time of acquisition

Setting up infrastructure and training employees. Electric mobility is a change of ecosystem. On the equipment side, charging infrastructure needs to be created. On the human side, the challenge is twofold. For charging, new habits need to be adopted, such as plugging in the vehicle as soon as it is parked, at work as well as at home. For driving, an electrified vehicle requires specific eco-driving training: to increase an electric vehicle's range on a single charge, and to limit the consumption and CO2 emissions of a plug-in hybrid.

Day to day

Objectives need to be measured and adjusted according to running costs. This ranges from monitoring fuel consumption to choosing assistance, insurance, maintenance or repair solutions. And since tax rules change regularly, you need to keep a constant watch to keep optimising your fleet's taxation.

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What Citroën is doing in practice to support SMEs

A full range of low-emission products, distinctive services, all-inclusive financing solutions and management tools to meet every professional use.

Electrified passenger cars with ever greater range and low consumption

This is the case with the new C5 Aircross. In its electric version, the ë-C5 Aircross, the new high-capacity 97 kWh battery, combined with a more efficient design, delivers up to 680 km on a single charge (WLTP), removing range concerns. In its plug-in hybrid version, the C5 Aircross PHEV 195, combined consumption is between 2.5 and 2.9 L/100 km, emissions are below 57 g CO2/km and electric range is close to 100 km.

The widest range of electric utility vehicles available

It starts with the electric ë-C3 Van, the only utility model in its category, for last-mile delivery. It continues with the ë-Berlingo Van for retailers, the ë-Jumpy for tradespeople and the ë-Jumper for transport professionals.

Trained advisers

In many of its dealerships, Citroën provides advisers specialised in taxation and TCO (total cost of ownership).

A cost simulator

Together with Leasys, Citroën has developed a TCO simulator. It helps you choose the best vehicle based on the company's financial situation, as well as financing, taxation and needs, both for use and maintenance. It also makes it quick to compare the TCO of electric and combustion-engine versions.

Tailored financing

Citroën has developed a range of solutions, including long-term leasing from 24 to 48 months, covering everything from delivery to maintenance and 24/7 assistance.

Support with infrastructure

With Free2move Charge Business, the installation of charging stations by Citroën can be handled at the dealership, at the same time as the purchase of electric vehicles, with trusted partners and regular promotions.

Built-in data

With the Mobilisights and ConnectFleet solutions, data is first extracted in real time from Citroën vehicles. It can then be used in the fleet management tools made available to customers. This helps optimise usage, from tracking vehicle consumption to detecting breakdowns, as well as organising maintenance.

Discover Citroën solutions (in French) 

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In conclusion

• In a constantly changing tax and regulatory landscape, companies have to navigate between incentives, obligations and new mobility practices.

• SMEs need support to integrate electric vehicles into their daily operations for the long term and reap all the economic benefits.

• The success of this transition depends as much on understanding the tax levers as on controlling TCO and usage.

• Citroën draws on its long-standing expertise with professionals to offer accessible products and consistent solutions adapted to every need.

• With its pragmatic approach and integrated services, the brand helps turn fleet electrification into an opportunity.

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