France expands electrification plan

France has announced a second phase of its electrification plan, presented on October 15, 2026, which targets light commercial vehicles (VUL). The plan includes three measures aimed at supporting artisans, small businesses, and small and medium-sized enterprises (SMEs).

Electric VULs lag behind passenger cars

While electric cars have gained momentum, with over 40% of new car sales in September being electric, light commercial vehicles remain predominantly thermal. This leaves companies using them exposed to fuel price fluctuations, prompting the government to push for more electric VULs on the roads.

Financial incentives for electric VULs

Up to 11,000 € in aid will be provided for European-assembled light commercial vehicles. Starting January 1, 2027, small businesses and SMEs will be eligible for an additional purchase bonus for an electric VUL produced in Europe. This aid is in addition to the revised CEE bonus, which depends on the vehicle's weight and is increased for models assembled in the European Economic Area.

Government promotes leasing of electric VULs

The government is also focusing on leasing for European-assembled light commercial vehicles targeted at small businesses and SMEs. European manufacturers will commit to specific volumes, and a charter will set the amount of rentals. The goal is to fund 20,000 electric VULs through this program.

License change to support electric VULs

The category B license, which currently limits driving to vehicles with a total authorized weight of 3.5 tonnes, will be extended to 4.25 tonnes for electric vehicles. This change is based on a European directive adopted in November 2025 and is planned to be implemented by January 1, 2027.

Low-interest loans for electrification

Loans at 1.5% interest will be available to finance the purchase of electric vehicles. A "electrification" bonus loan envelope will be launched, using 100 million euros from an energy savings certificate (CEE) program to increase about 1 billion euros in loans. These loans will not only finance light commercial vehicles but also cover up to 20,000 electrical equipment, from heat pumps to heavy trucks.