Electric vehicle mandate for businesses: what the law says in 2026

Is it mandatory to drive electric vehicles when managing a corporate fleet? The short answer is no: the law does not prohibit purchasing internal combustion engine vehicles. But it is making such purchases increasingly expensive. Since 2025, a specific tax has been pushing large fleets to incorporate a growing share of clean vehicles, or face penalties. Here’s an overview of who is affected, what quotas apply in 2026, and how much it costs to fail to comply.

Are companies required to switch to electric vehicles?

Not strictly speaking. No law currently requires a company to purchase only electric vehicles. However, large fleets are subject to a greening requirement: they must include a minimum proportion of low-emission vehicles each year. Since March 1, 2025, failure to meet this target triggers a tax, the annual incentive tax (TAI). Internal combustion engines are therefore still permitted, but they are becoming increasingly expensive when viewed across an entire fleet.

Discover and try our app

Exclusive price and features

Rated 4,5/5 by users

Download the app

Who is affected by the requirement?

The TAI applies to companies with a fleet of at least 100 light-duty vehicles, assessed per legal entity (SIREN number). Below this threshold, a company is not liable for the tax. The vehicles covered are passenger cars and light commercial vehicles used for business purposes. Small businesses are therefore exempt from the measure, but large corporations, rental companies, and fleet managers are on the front lines. Note: the threshold is based on the total fleet owned or leased by the company, not just on vehicles purchased during the year.

Quotas and the timeline through 2030

The target for low-emission vehicles increases each year. It was 15% in 2025, rises to 18% in 2026, and will continue to increase through 2030.

Year	Minimum quota for low-emission vehicles
2025	15%
2026	18%
2027	25%
2028	30%
2029	35%
2030	48%

Source: Légifrance (Code of Taxation on Goods and Services) and ecologie.gouv.fr, accessed in June 2026.

Which vehicles qualify as “low-emission”?

A vehicle is considered low-emission if it emits 50 g of CO2 per kilometer or less in the WLTP cycle and meets strict pollutant thresholds. Specifically, until 2026, this includes 100% electric and hydrogen-powered cars, as well as certain low-emission plug-in hybrids. Important note: starting in 2027, the definition will become stricter, and only 100% electric or hydrogen-powered vehicles will be counted. Plug-in hybrids will then be excluded from the count.

What are the penalties for non-compliance?

The TAI is not simply a flat-rate fine. It is calculated based on the gap between the target and the actual number of clean vehicles added, weighted by the fleet renewal rate. A unit rate per missing vehicle is applied to this gap, which increases over time: €2,000 in 2025, €4,000 in 2026, and €5,000 starting in 2027. For a large fleet falling short of its targets, the bill can climb quickly—which is precisely the goal: to make electrification more cost-effective than inaction.

How can you comply?

The logic is simple: incorporate enough low-emission vehicles to meet—or even exceed—the annual quota. In practice, this involves a few steps. First, audit your fleet and identify the highest-emitting vehicles, which must be replaced as a priority. Next, plan replacements over several years, aligning with the quota trajectory rather than reacting to urgent needs. Next comes the choice of models: the shift to 100% electric is becoming essential as we approach 2027, the date by which plug-in hybrids will no longer count. Finally, an often-overlooked step: organizing charging infrastructure in advance, so that electric vehicles are truly usable on a daily basis. A fleet with insufficient energy supply means electrification that stalls.

What financial assistance is available to electrify a fleet?

When it comes to financial support, the rules have changed. The eco-bonus has not been available to corporations since the end of 2024: a company can therefore no longer rely on it for its purchases. Other incentives remain. VAT on charging electricity is recoverable, unlike a large portion of that on fuel, and electric vehicles benefit from exemptions on certain annual taxes. Finally, leasing remains a common way to spread out expenses and control resale value. Amounts and conditions often change: it’s best to check them at the official source before making any commitments. The right approach is to consider the total cost over the vehicle’s ownership period, including incentives, rather than just the purchase price.

LOM, TAI, and charging stations: what to distinguish

The subject is prone to confusion because two obligations overlap. The first, older one stems from the Mobility Orientation Law (LOM): it imposed quotas when renewing fleets. Starting in 2025, the TAI takes over, with a different logic: it taxes the gap relative to the target across the entire fleet, not just on new purchases. The second requirement concerns charging stations: the law mandates the pre-installation of charging points for many company and condominium parking lots. Electrifying your fleet and being able to install charging stations are therefore two related but distinct projects.

Anticipate rather than react: the right calculation

Beyond the regulatory requirement, fleet electrification makes economic sense. An electric vehicle costs less to operate: electricity is cheaper than fuel, especially with controlled charging, and maintenance costs are lower. For a fleet of several hundred vehicles, these savings quickly add up to tens of thousands of euros per year. Add in the taxes avoided, and the math often favors early electrification over a wait-and-see approach that piles up taxes and the extra costs of running internal combustion engines. The key is not to overlook the charging aspect, which can make or break the operation’s profitability. Many companies learn this the hard way: without a reliable charging solution, drivers turn away from electric vehicles, and the fleet never truly goes green.

Charging an electric fleet without the hassle

This is often the blind spot of electrification: we switch to electric vehicles, but we forget where and how to charge them. For a fleet, charging plays out in three areas: at the company’s depot, at employees’ homes, and on the road during trips. On this last point, the public fast-charging network is crucial. With its fast-charging stations, Electra offers charging points up to 400 kW and charging that starts automatically thanks to Autocharge, without a badge or app. For drivers, two subscription plans reduce the cost at the station:

Electra+ Essential: €1.99/month with no commitment, a €0.10/kWh discount on every charge on the Electra network.

Electra+ Smart: €4.99/month with no commitment, €0.20/kWh discount on every charge on the Electra network.

Find Electra fast-charging stations on the map, and details of the plans on the Electra+ subscription page .

Frequently Asked Questions About the Corporate EV Mandate

Are companies required to purchase electric vehicles?

No. The law does not ban internal combustion engines, but fleets of more than 100 vehicles must meet a quota of low-emission vehicles, or face a tax penalty.

What is the quota for clean vehicles in 2026?

18% of the fleet, up from 15% in 2025. The target then rises to 25% in 2027, and up to 48% in 2030.What is the annual incentive tax (TAI)?

A tax due as of March 1, 2025, for fleets of at least 100 vehicles that do not meet their low-emission vehicle quota.

Do plug-in hybrids count toward the quota?

Yes, until 2026, if they emit 50 g of CO2/km or less. Starting in 2027, only 100% electric and hydrogen vehicles will be counted.

Does a company have to install charging stations?

Pre-installation of charging stations is required for many commercial and condominium parking lots. This is a separate requirement from the fleet tax.

Key Takeaways

The requirement is not a ban, but an increasingly clear price signal. Fleets of more than 100 vehicles must go green, with a quota rising to 18% in 2026 and climbing to 48% in 2030, under penalty of a tax that increases each year. Anticipating the change is almost always cheaper than dealing with the consequences. The real challenge, beyond purchasing the vehicles, is organizing their charging: at the depot, at home, and while on the road. This is where the success—or failure—of fleet electrification is decided.

To locate Electra stations and plan your fleet’s charging, download the app from the App Store or Google Play. And to reduce the cost of each charge,the Electra+ Smart subscription pays for itself quickly for drivers who drive a lot.