To support the ecological transition in the transport sector in France, the Mobility Orientation Law (LOM) was designed and adopted. It establishes the obligation for companies to to privilege low-emission vehicles when renewing their fleet.
- In this context, what are the specific obligations that the LOM law imposes on companies?
- How to effectively anticipate the renewal of your vehicle fleet in 2025?
- What will be the benefits/challenges of this legislation for your business?
Find in this article all the information you need to comply with the requirements of this law, while improving the management of your vehicle fleet.
What is the LOM law?
The Mobility Orientation Law (LOM) aims to profoundly transform the transport sector and has promote sustainable mobility in France. Adopted in 2019, this legislation is based on substantial public investments until 2027: 3.4 billion euros for the period 2017-2022 and 14.3 billion euros planned for 2023-2027. These efforts aim to reduce carbon emissions in the transport sector, in line with the objectives of the national low carbon strategy and climate plan.
Furthermore, since July 2021, the LOM has been strengthened by the Climate and Resilience Law, which is structured around three main axes:
- Improving transport services and infrastructure for daily journeys;
- Supporting low-emission vehicles via infrastructure such as electric charging stations to reduce the carbon footprint;
- Encourage the adoption of new technologies and innovation – such as carpooling, solutions for soft mobility and eco-driving.
By the way, regarding eco-driving, click here to find out more.
Fleet renewal obligations with the LOM law
VFE or Low Emission Vehicles
To encourage business investment in VFE technology, the average mass-produced VFE by clean vehicle manufacturers must not be less than their objective.
Furthermore, the LOM law expressly stipulates that companies must replace part of their vehicle fleet with VFE vehicles. LOM law impacts trends in the professional automotive market.
For example: Many companies implement car sharing and sustainable mobility systems.
Private and public companies of more of 50 employees and having more than 100 light vehicles (PTAC < 3.5 tonnes) are required to comply with specific VFE quotas when renewing their vehicle fleet. These quotas are as follows:
- 10 % from January 1, 2022;
- 20% from January 1, 2024;
- 40 % from January 1, 2027;
- 70 % from January 1, 2030 (against 50 % initially planned).
Vehicles concerned and fine
Furthermore, vehicles considered “clean” under this measure include:
- Electric models;
- Plug-in hybrid vehicles;
- Hydrogen vehicles.
That said, companies must also annually declare the quantity and type of new vehicles purchased or leased for their business activities. A progressive fine is planned from 2026, going up to €5,000 per non-compliant vehicle, with a ceiling set at 1,% of turnover.
Financial aid available
In order to encourage companies to choose methods of environmentally friendly transport, the LOM law provides for a range of incentive measures and financial aid:
Sustainable mobility package
Employers can offer their employees environmentally friendly modes of transport for their home-work journeys (carpooling, cycling, public transport) a sustainable mobility package of up to €400 per year.
Bicycle tax credit
Although not directly part of the LOM, companies can benefit from a tax credit equivalent to 25 % of expenses, up to a limit of €200 per bike per year, for those that provide bikes to their employees. Such a measure aims to encourage the use of bicycles as a regular means of transport.
Grant for the installation of electric charging stations
All or even a large part of the total expenditure incurred for the installation of electric charging stations in company car parks can be reimbursed in the form of a grant of up to 40 %, up to a limit of €1,860 per terminal, notably through the Advenir program, up to 30 to 50 %, within the limit of specific ceilings depending on the project. Thus, the amount of the benefit can reach €1,860 or less. This measure helps make electric and plug-in hybrid vehicles more accessible.
Tax depreciation on electric vehicles
Companies will be able to benefit from additional subsidies for the investments in cleaner technologies, both at regional and local level. These aids will make it possible to spread the burden of high costs among several actors, thus reducing the financial burden on the company itself.
Local aid and subsidies
Various regions and municipalities offer specific advantages for support the purchase of greener vehiclesThese aids are adapted to local cases and policies and generally complement national programs.
Preferential rate loans
Some financial institutions have partnered with the government or regions to provide preferential loans for the purchase of environmentally friendly vehiclesThese loans help facilitate initial financing and motivate companies to take the step towards a greener vehicle fleet.
Solutions to support businesses
To comply with the requirements imposed by the LOM law and streamline fleet management, businesses need a variety of tools and support solutions. These resources will make it easier a smooth transition to low-emission vehicles, while ensuring efficient management and by maximizing the benefits of available aid.
A mobility plan
The Mobility Plan (PDM) is a strategic initiative implemented by companies to improve access to transportation for employees, thereby minimizing their overall environmental footprint.
Fleet management software and systems
THE Fleet management software, such as SoFLEET, are essential tools for companies wishing to optimize the management of their vehiclesThey offer a multitude of features enabling real-time vehicle tracking, simplified management of maintenance and repair needs, cost optimization based on performance, and ensure full compliance with current regulations.
