What are Governments Doing to Help Companies Transition to EVs?

Amidst the escalating climate crisis, the shift towards electric vehicles (EVs) stands out as the foremost solution for sustainability in fleet management. Nevertheless, there remains a significant barrier preventing many organisations from embracing the transition, and that is cost. In this context, it becomes relevant to explore the measures implemented by governments to help companies with making the switch to EVs.

The UK

Workplace Charging Scheme

The Workplace Charging Scheme presents an opportunity for companies looking to install EV charging points within their premises. This initiative serves as a proactive measure to promote the adoption of EVs among employees for their daily commute. Through a voucher-based system, the scheme offers valuable support for both the procurement and installation phases.

Under this grant, companies can benefit from coverage of up to 75% of the total costs associated with installing EV charger points at the workplace. The grant is capped at £350 per socket and extends support for up to 40 sockets across all sites per applicant.

France

Ecological Bonus (Bonus écologique)

The ecological bonus (bonus écologique) applies to electric and hydrogen vehicles in the passenger car and van categories, with new cars having to weigh under 2.4 tonnes. M2 category vehicles (N2 for vans) with a total permissible laden weight of 3.5 tonnes or less also qualify. Eligibility requirements state that the new vehicle's purchase cost must be below €47,000. 

Beginning on the 1st of January 2023, financial support amounts in France are 27% of the total acquisition cost and inclusive of all taxes. Additionally, if a battery is leased, its cost is also taken into account. The maximum bonus is capped at €5,000 for individuals and €3,000 for legal entities. 

For the purchase of new vans, a fixed aid of 40% of the purchase cost, inclusive of taxes, is provided. This too includes the cost of a leased battery. The aid is capped at €6,000 for vehicles acquired or leased by individuals and €4,000 for those acquired or leased by legal entities.

Spain

MOVES II

For companies in Spain, there are grants available under the European Commission's MOVES II programme for purchasing and leasing across various EV categories, similarly to in France. 

In the passenger vehicle category with a list price up to €45,000, those with a range of 30-90 km can receive €1,600, which increases to €2,200 if the old vehicle is scrapped. Vehicles with a range of 90 km or more can get €2,190, rising to €3,000 if paired alongside the scrapping of the old vehicle. 

Furthermore, light goods vehicles (up to 3.5 tonnes) with a range of 30 km or more can receive €2,900, increasing to €4,000 with scrappage, and buses weighing up to 5 tonnes as well as heavy goods vehicles between 3.5-12 tonnes are eligible for a grant of €5,000.

Germany

Environmental Bonus (Umweltbonus)

Germany's environmental bonus (umweltbonus) program offers purchase grants based on the pricing of the vehicles themselves. For EVs with a price up to €40,000, fully-electric vehicles qualify for a €9,000 grant, while plug-in hybrid vehicles receive €6,750. 

Vehicles priced up to €65,000 are eligible for slightly reduced grants, with fully-electric vehicles receiving €7,500 and plug-in hybrid vehicles obtaining €5,625. Moreover, until 2030, the program provides a one-off subsidy of up to 50% of the purchase costs for purely electric vehicles used in commercial deliveries.

Switch to EVs with MICHELIN Connected Fleet

The above incentives are just a few instances of the benefits your company could gain from switching to a greener fleet, especially if it operates internationally. Indeed, for adopting more sustainable vehicles which produce no CO2 emissions, countries have also implemented a number of tax-based incentives as well.

Although it’s true that integrating EVs into your fleet admittedly entails a relatively sizable initial cost, this can be offset to a large degree by how governments are helping companies make the transition. In the UK particularly, the approaching 2035 ban on ICE vehicles indicates that now may be an opportune time to switch, i.e., while these incentives are still here. Likewise, it’s probable that many other countries will follow suit too, making now a strategic time to explore your options.

If you’re interested in substantially reducing the negative environmental impact of your fleet, then be sure to make an enquiry into our services today. MICHELIN Connected Fleet’s EV fleet solutions also include our consultative service, so you can be sure we’re always at hand to assist you.