Features
29 Feb 24

60% of French companies not meeting their EV target

Six out of ten French companies with large fleets are not meeting the electrification target set out in France’s Mobility Law, analysis by Transport & Environment (T&E) shows. A proposed amendment could remedy the situation, and provide an example for the rest of Europe, the clean mobility advocacy group says. 

The Mobility Law (or LOM, short for Loi d’Orientation des Mobilités) requires some French companies to include a minimum quota of low-emission vehicles in their orders. 

3,500 companies

For both 2022 and 2023, that quota was 10%, but it will increase over time. The LOM only applies to the around 3,500 French companies with a fleet of more than 100 vehicles. This is just 0.1% of all companies in France, but these order 60% of all new cars and vans. 

  • The T&E analysis finds that 60% of companies subject to the law do not meet the 2023 electrification quota – only a slight improvement over 2022, when 66% of affected companies failed to comply.
  • Some companies do manage to include a large share of EVs in their vehicle orders. T&E mentions EDF (40%) and La Poste (46%) as examples. However, many large groups still miss the legal targets. T&E singles out Carrefour and Air Liquide (both 1%).  
  • The overall proportion of new EVs registered in 2023 by the companies subject to the law stands at 8%, which is almost three times lower than the share of new EVs acquired by households (22%). The market average is 16%, while the figure for all companies (including those not subject to LOM) is 11%.

Excluding hybrids

Things could improve with a new law proposed in the French parliament by representative Damien Adam. If passed, the mandate would exclude hybrids (PHEVs) and include only full-electrics (BEVs), and the law would come with hefty fines and other punishments for non-compliance. 

Analysing the potential effect of this proposed law over a decade (2025-2035), T&E calculated that it would reduce emissions by 57 million tonnes of CO2 . That is the equivalent of the emissions of two and a half years of air traffic in France.

Also, if French companies continue their loyalty to French-made cars, it would boost demand for EVs from Renault, Peugeot, Citroën and DS by a total of 1.7 million units, of which 550,000 would be produced in France. 

Fleet Regulation

And finally, the law would lead to an additional inflow of 2 million EVs on the second-hand market by 2035, which is 20 times the number of used EVs sold in 2023. 

T&E points out that France is not alone in Europe in having the corporate segment lag behind the private market when it comes to the electrification of mobility. Likewise, the EU should take note of Mr Adam’s proposal, and include in an upcoming Fleet Regulation strict and binding targets for the electrification of large fleets and leasing companies, the organization says. 

Image: Guillaume Bavière, CC BY 2.0 DEED


 

Authored by: Frank Jacobs