According to the 2024 fleets and mobility barometer, conducted by the Ipsos institute for the Arval Mobility Observatory, France now ranks in the top three of the most advanced European countries when it comes to electrifying automotive fleets.
With over 8 out of 10 companies already adopting at least one alternative technology for their personal vehicles, France stands out compared to the European average. In detail, hybrid technology tops the list of electrified technologies (implemented by 50% of companies) according to the barometer published by Arval, the specialist in long-term rentals.
The enthusiasm for hybrid technology
Indeed, before transitioning to 100% electric vehicles, hybrid technology currently appears as an ideal solution to fleet managers, with sufficient autonomy to move around in urban environments, including low emissions zones (LEZ) where the most polluting vehicles are banned, while also allowing for long-distance travel, such as on highways.
A strong potential for electrification development
Currently, only three out of ten companies have switched to 100% electric mode. However, while this percentage may seem low, alternative energy has seen the largest growth within companies over the past year (an increase of 5 points). Furthermore, the development potential over the next three years is significant, with 24% of companies planning to implement it within a 3-year timeframe. It is mainly companies with more than 100 employees that intend to do so, particularly to comply with the Mobility Orientation Law (LOM).
Challenges still remain to be overcome
It should be noted that fleet managers’ reluctance to adopt 100% electric vehicles remains widespread: from the availability of public charging stations, to the lack of charging points in the company premises and employees’ homes, to the high purchase price of models. To make matters worse, it is worth mentioning the discontinuation of the €5,000 bonus for electric passenger cars at the beginning of 2024, although the purchase of a new light commercial vehicle still qualifies for a €3,000 grant.
What is the Mobility Orientation Law (LOM)?
Since January 1, 2022, companies and administrations are required to integrate electric or plug-in hybrid vehicles when renewing part of their fleet. For example, for companies with more than 100 vehicles, the current quota is set at 20%, which will increase to 40% on January 1, 2027, and finally to 70% starting from January 1, 2030. It is important to note that to date, no sanctions have been set for entities not complying with these rules.