France will (heavily) tax companies that do not play the game

Rumors give way to facts. It's official: the government will punish companies that do not respect the quotas for electrified cars in their fleets. A fine of 2,000 euros per missing vehicle will be introduced from 2025.

A fine of 2,000 euros per missing vehicle from 2025

Businesses have an important role to play in the electrification of the vehicle fleet. Professionals now buy 50% of new cars in France. That’s saying something! But greening quotas are rarely respected. The Mobility Orientation Law (known as LOM) normally requires French companies to respect a quota of 20% of electrified cars if their fleet exceeds 100 vehicles.

To constrain the companies concerned, the government has therefore decided to take action. The Executive tabled an amendment in the Senate aimed at introducing sanctions for bad students. Concretely, a tax of 2,000 euros could be introduced from 2025, another of 4,000 euros in 2026 and one of 5,000 euros in 2027. The fine applies for each missing low-emission vehicle, in companies with a fleet of more than 100 vehicles. However, rental companies will be spared.

Also readSocial leasing on electric cars will not be relaunched before the second half of 2025

A bonus for cars made in France?

The French State intends to charge companies which do not reach a target share set at 15% for 2025 (i.e. a relaxation compared to the LOM law). Then it will be 18% in 2026, 25% in 2027 and 30% in 2030. Note that the vehicles concerned are not only 100% electric, since they are models with CO2 emissions below 50 g/km, this which still leaves the door open to plug-in hybrids.

Adopted on Wednesday November 27 by the senators, this text is part of the PLF 2025 (finance bill). This is a different measure from the amendment tabled by MP Jean-Luc Fugit in the National Assembly.

In fact, the government wanted to provide some flexibility, while introducing complexity. For example, there is talk of a bonus “ depending on the production sites of electric vehicles “. According to the text, cars manufactured in France and Europe could in particular be favored.