Corporate fleets: the market is coming alive

The number of vehicle deliveries for professionals increased by 35.7% in July and 32.9% in August, resulting in over 100,000 vehicles in company garages. If any sector is showing a positive trend, it is undoubtedly the automotive sales to professionals. Since the beginning of the year, it has continued to grow, and the figures remain in the green zone. The summer season turned out to be particularly successful, with deliveries maintaining a good pace: +35.7% in July, +32.9% in August, leading to over 100,000 vehicles in company garages. Observers who were skeptical about the sustainability of this growth were pleased to note that the trend continued in September. This is good news for car manufacturers who have faced stagnation in the household market. What is behind this improvement? The end of product shortages, the introduction of new models, and the expansion of the offering of plug-in hybrid vehicles. Undoubtedly, the growth is driven by green cars. Orders for them reached record levels: +84.44% for 100% electric vehicles, +46.98% for standard hybrids, and +35.65% for plug-in hybrids in the first nine months of the year.

“Companies are taking the mobility law into account.

"In this regard, hybrids emit 25-30% less CO2 than traditional cars." The electrification of the vehicle fleet has numerous tax advantages: exemption from the usage tax - which replaces the company car tax, an environmental bonus, and a 50% reduction in the employer's contribution for benefits in kind. Its advantages remain undeniable in operation due to lower energy and maintenance costs.

However, for some executives, the transition is still a limiting and costly process, as they are deterred by the prices listed in catalogs, the cost of installing charging stations, fleet maintenance, and employee training. "It requires coordination between various organizations: the CFO for budgeting, the real estate director for the placement of charging stations, accounting to determine how to reimburse an employee who connects to their home, and finally, the HR department to establish whether they live in a house or an apartment," summarizes Philippe Ambon, the development director of Holson, an association of independent fleet managers aFleet.

Favorite cars of companies. © / L'Express If private firms, administrations, and rental companies are showing great caution in acquiring electric vehicles, they are clearly moving away from diesel fuel. "The most noticeable element is the collapse of diesel penetration," notes AAA Data in its October 2023 report. The statistics organization, however, clarifies that the situation is different for new commercial vehicles purchased by companies. Diesel fuel is certainly losing ground, but it remains widely used. This phenomenon is due to two factors: a limited selection of models on one hand; and the necessary compliance with operational requirements that demand certain power and range on the other hand. The new generation of batteries, which allows for over 500 kilometers of travel and has optimized charging times, may convince the most skeptical, provided they remain affordable.