Electric Company Cars for Businesses: Benefits & Subsidies 2025

From 2035 onwards, new combustion engine cars will no longer be approved across the EU. This is already impacting car manufacturers and the automotive market today. However, there are additional reasons why businesses should consider electrifying their vehicle fleet now. In this article, we highlight the benefits of electric company vehicles and their savings potential.

Electric Company Cars for Businesses

Switching to electric company cars involves more than just purchasing new vehicles. Companies must also consider the charging infrastructure to ensure the fleet remains fully operational at all times. The range of the vehicles is just as relevant as the charging time and the number of charging stations. However, the investment is worthwhile.

Market Trends for Electric Vehicles 2025

Since the beginning of 2025, there has been increasing acceptance and demand for electric vehicles. After sales figures plummeted in 2024 (partly due to negative media coverage), the number of newly registered electric vehicles has been rising again since the start of the year. Why is this happening? Several reasons can be identified:

• Sustainability Awareness: Numerous environmental disasters and weather events have made people more aware of climate change. Against this backdrop, more consumers are opting for sustainable mobility solutions.

• Charging Infrastructure: Charging stations for electric cars are springing up everywhere, whether in cities or rural areas. Switzerland boasts an unparalleled charging network in Europe. This development alleviates the fear of limited range for electric cars.

• Technological Advances: Rapid progress in battery technology is leading to ever-increasing ranges while simultaneously reducing charging times.

• Subsidies: Although Switzerland no longer offers nationwide subsidies for electric cars since import duties were reinstated, regional tax benefits are still available to car owners.

• Low-Emission Zones: Some cities already have environmental zones that prohibit high-emission vehicles from entering. The expansion of such zones is expected in the future.

• Model Variety: Today, there are hardly any compromises when choosing an electric vehicle. Electric cars are available in all vehicle classes and configurations, from nimble microcars to luxury sedans and spacious SUVs. Many electric vans and transporters are also available for commercial use.

Why Businesses Should Switch to Electric Company Cars

One crucial factor in deciding whether to electrify your fleet is future-proofing. For businesses requiring mobility, transitioning to an electric fleet will be necessary sooner or later, as stricter regulations and emission limits are expected.

Benefits of Electric Vehicles for Businesses

Let’s take a look at the advantages businesses can gain from electrifying their fleet.

Cost Savings Through Subsidies and Incentives

Although electric vehicles are usually more expensive to purchase than comparable combustion engine vehicles, they quickly offset this disadvantage with lower operating and maintenance costs.

• Electric vehicles have lower operating costs since electricity is cheaper than gasoline or diesel. This price difference is expected to widen as rising CO2 prices make fossil fuels more expensive.

• Maintenance costs for electric cars are lower because their motors have fewer moving parts and do not require operating fluids like oil.

• Some Swiss cantons offer tax benefits for electric cars.

• Prices for electric cars are decreasing due to technological advancements and competitive offers from Asian manufacturers.

Environmental Friendliness and CO2 Reduction

CO2 is the primary driver of climate change, making its reduction a stated goal in many countries. Switzerland has levied a CO2 tax on fuels since 2008, which increases annually and reached 120 CHF per ton of CO2 in 2023. This regulatory tax encourages industries and businesses to invest in climate-friendly and low-emission technologies, such as an electric fleet. By doing so, companies act environmentally responsibly, reduce CO2 emissions, and save costs.

Image Enhancement and Corporate Social Responsibility

Switching to electric vehicles supports corporate sustainability goals, positively impacting brand image. Many customers prefer to buy from environmentally responsible companies that demonstrate awareness of their societal and environmental responsibilities (Corporate Social Responsibility). Most businesses now value sustainability among their supply chain partners, making sustainable practices a competitive advantage. Employees also view the provision of an electric company car as an attractive perk that strengthens their connection to the company.

Subsidy Opportunities in Switzerland

Several European countries offer attractive subsidies or tax benefits for electric vehicle buyers. Switzerland has also provided such incentives. What is the current situation regarding subsidies for electric mobility in Switzerland?

Current Government Subsidies and Grants

Unfortunately, Switzerland has reinstated a 4% import tax on electric vehicles as of 2024, ending the only nationwide subsidy for electric mobility. However, some municipalities and cantons still offer grants and incentives for electric car owners.

Basel-Stadt

• Charging Infrastructure Initiative: The city funds investments in the basic installation of charging infrastructure for electric vehicles in parking garages and parking facilities.

• “Economy Under Power” Initiative: Businesses based in Basel-Stadt receive between 5,000 and 15,000 CHF per electric vehicle from the mobility fund.

Schaffhausen

• 2025 Energy Subsidy Program: Covers 25% of the development costs for charging infrastructure in multi-family homes, industrial/commercial buildings, and office buildings. Additionally, bidirectional charging stations for electric vehicles coupled with residential solar power systems are subsidized with 2,000 CHF, up to 25% of the total investment.

The Swiss Climate Foundation provides grants to SMEs investing in climate-friendly technologies. Some car insurance companies also offer premium discounts for environmentally friendly vehicles, and certain leasing companies provide reduced leasing rates for electric cars. Subsidies are subject to change, so it is advisable to check their validity and see if your municipality has its own subsidy program. This website can help you find Swiss energy and mobility subsidy programs.

Tax Benefits for Corporate Fleets

Companies charging their electric fleet do not have to pay fuel tax. Employees also benefit since charging their electric company car at the employer’s premises is not considered a taxable benefit. Additionally, private use of a company car is a taxable benefit. While combustion engine cars are taxed at 1.0% of their gross list price per month, electric cars are taxed at only 0.25% to 0.5%, depending on the vehicle type.

Regional Differences in Subsidy Programs

In some Swiss cantons, electric car owners are exempt from motor vehicle tax. Other cantons offer a temporary exemption or partial reduction.

• Zurich, Glarus, Solothurn: 100% exemption

• St. Gallen: 100% exemption for 4 years, then 50%

• Basel-Stadt: 50% exemption for 10 years

• Bern: 60% exemption for 4 years

Implementation and Fleet Management

Despite all the benefits of electric vehicles for businesses, electrification requires careful planning. At CARIFY, we outline the key considerations and available options.

Integration Into Existing Fleets

Most businesses do not replace their entire fleet at once. The transition happens gradually as new vehicles are needed. Analyze your fleet’s usage patterns beforehand to determine which vehicles can be replaced with electric alternatives.

Train employees on how to use electric vehicles to ensure a smooth transition. Plan for charging times and monitor vehicle ranges.

With CARIFY’s Try-&-Buy program, you can test electric vehicles of all types and classes before making an investment. We offer exclusive fleet deals and support your transition to an electric fleet.

Charging Options and Infrastructure

When planning the charging infrastructure for your electric fleet, a multi-month test phase is recommended to determine exact needs. Are there enough charging points? Can the network be expanded? Do you have the right mix of fast and standard charging stations?

Long-Term Planning and Strategy

Assess needs considering driving routes, charging times, and vehicle types while keeping sustainability goals in mind. A cost-benefit analysis helps with financial planning. Are partnerships with electric vehicle dealers, subscription providers like CARIFY, or charging infrastructure providers possible? A monitoring system tracks vehicle performance and efficiency, allowing for strategy adjustments.

Conclusion

Sustainability, future viability, and low costs are strong arguments for considering fleet electrification. CARIFY’s electric car subscriptions make the transition easier, offering flexible solutions and cost optimization. Fleet managers appreciate the straightforward vehicle management with all costs included in a monthly rate. With the Try-&-Buy program, you can extensively test vehicles (1, 3, or 6 months) before deciding on a purchase at our favorable conditions.

FAQs

Is an electric car a sensible choice as a company car?

Absolutely! Electric vehicles require less maintenance and have lower operating costs. Privately used electric company cars are significantly more tax-efficient than combustion-engine vehicles, and charging at the employer’s location is tax-free.

How much salary is a company car worth in Switzerland?

A company car is considered a taxable benefit in kind. For electric vehicles, it is taxed at 0.25% to 0.5% of the vehicle’s gross list price per month (compared to 1% for combustion-engine cars). The exact amount depends on the salary level and vehicle value.

How is a company car taxed in Switzerland?

Anyone using a company car for private purposes receives a taxable benefit in kind. Employers must tax this benefit at 1% of the vehicle’s gross list price per month for combustion-engine cars. Those provided with an electric vehicle by their company benefit from lower taxation, ranging from 0.25% to 0.5% of the gross list price, depending on the vehicle type.