Electric Vehicle (EV)

A battery electric vehicle runs only on electricity stored in its battery, with no combustion engine and no tailpipe emissions. In a fleet, it means lighter annual taxes in France and less routine maintenance. In return, it needs a charging plan and assignments that respect its real-world range.

What is an electric vehicle?

A battery electric vehicle runs without a combustion engine. One or more electric motors draw their energy from a high-voltage battery, recharged at a charging station or from a power outlet.

It differs from a hybrid vehicle, which combines a combustion engine and an electric motor. For the French tax authorities, an electric vehicle is one whose only energy source is electricity. This distinction matters for the annual taxes.

The technology is available for passenger cars as well as light commercial vehicles. The choice then depends on payload, cargo volume and the distances covered.

What are its advantages for a fleet?

• CO₂ tax: any vehicle running exclusively on electricity is exempt from the annual CO₂ tax (Service Public, BOFiP, both in French).
• Air pollutant tax: electric vehicles fall into category E, with the green Crit'Air air-quality sticker. The rate is €0 in 2026 and 2027 (Service Public).
• Lighter maintenance: no oil changes, fewer moving parts, and regenerative braking that spares the brake pads.
• Carbon footprint: ADEME, the French ecological transition agency, uses 0.0519 kgCO₂e per kWh for the 2024 average electricity mix in mainland France (Base Carbone®). This factor goes into the fleet carbon footprint.
• Driving comfort: quiet operation and instant torque, appreciated on repeated city trips.

What are its limitations?

• Purchase cost: the purchase price or lease payment is often still higher than for a comparable combustion-engine model. Think in terms of total cost of ownership.
• Charging: it requires charging stations at the depot, access to public charging, or home charging. See the types of charging stations.
• Variable range: cold weather, speed and the load carried all reduce it. Assign vehicles according to actual trips.
• Battery and resale value: the battery's state of health weighs on residual value. Keep the charging and mileage history. See our article on battery life.
• Downtime: charging takes longer than filling up a tank. Route planning has to account for it.

Electric, hybrid or combustion: what annual taxes apply?

This table compares the two annual taxes due on a passenger car used for business purposes in France. The amounts are those published by Service Public for 2026.

Powertrain	Annual CO₂ tax	Annual air pollutant tax (2026)	Best-suited use
Battery electric	Exempt	Category E: €0	Predictable trips, regular return to the depot
Gasoline hybrid	Due: the exemption for hybrids ended on December 31, 2024 (BOFiP)	Category 1: €130	Mixed use, city and highway
Gasoline, Euro 5 or 6	Due, based on emissions	Category 1: €130	Low mileage, occasional use
Crit'Air 2 to 5 and unclassified vehicles	Due, based on emissions	€650	Vehicles to replace first

How do you handle charging and benefits in kind?

Home charging raises a practical question: how many kWh should be reimbursed to the employee? Answering it requires a reliable measurement of the energy charged into the vehicle. Our home charging reimbursement solution addresses this point.

The benefit in kind (avantage en nature) of an electric company car qualifies for a reduction. For an eligible vehicle provided since February 1, 2025, the reduction is 70% under the flat-rate method, capped at €4,641.60 in 2026. Under the actual-expenses method, it remains 50%, capped at €2,026.30 (URSSAF, in French). Model your own case with our benefit-in-kind calculator.

How Dadycar helps

Dadycar, a French fleet management software, tracks your electric vehicles just like the rest of the fleet. On compatible connected vehicles, telematics works without a box, with an optional device for the others. Electric vehicle optimization, trips and mileage data and the benefit-in-kind report help you decide which vehicles to electrify next and keep company-car taxation under control.

Find out more about our approach to the energy transition. Data is hosted in France, with OVHcloud.

Frequently asked questions

Does an electric company vehicle pay the CO₂ tax?

No. A vehicle whose energy source is exclusively electricity is exempt from the annual CO₂ emissions tax. For the air pollutant tax, it falls into category E, at €0 in 2026 (Service Public).

Is an electric vehicle suited to every use?

Not always. Start by analyzing actual trips: daily distances, stop times, access to a charging station. A vehicle that returns to the depot every evening is a good fit; a long, unpredictable route calls for more preparation.

How do you manage fleet electrification?

Start from each vehicle's usage data, then replace first the vehicles whose trips fit the available range. Our entry on fleet electrification details the approach, step by step.