For years, TCO (Total Cost of Ownership) was the fleet manager's mantra. It provided a precise way to evaluate the total cost of a vehicle over its entire holding period.
But the landscape has changed radically. Between the rise of the electric car, new ESG requirements, and the pressure for cost reduction and changing employee habits: managing a corporate vehicle fleet is no longer just about the cost of a vehicle.
Today, companies are no longer just managing cars. They are managing comprehensive mobility.
This is where TCM (Total Cost of Mobility) comes in: a more strategic, cross-functional approach that is better suited to the reality of modern fleets.
TCO represents the total cost of owning a vehicle over its period of use.
According to the Renault blog, TCO includes all expenses related to the purchase, use, and resale of a vehicle (source: blog.renault.re/tco-automobile).
For a long time, it was the primary tool for the fleet manager to compare internal combustion models and optimize budgets.
A TCO generally includes:
In a world of 100% internal combustion engines, this model worked very well. But with the electrification of fleets and changing usage patterns, its limitations are becoming clear.
TCO analyzes an isolated vehicle. However, modern mobility has become hybrid:
TCO does not measure actual usage or employee behavior. For an electric vehicle fleet, ignoring charging costs outside the depot or at home completely skews the analysis.
Another blind spot: environmental and strategic impact. According to the International Energy Agency (IEA), global electric car sales exceeded 14 million in 2023, accounting for approximately 18% of total sales (source: Global EV Outlook 2024, IEA).
This means the transition is massive. Yet, TCO:
In a stricter regulatory context (CSRD, green taxonomy), these elements are becoming decisive.
The TCM (Total Cost of Mobility) broadens the perspective. According to Geotab, TCM aims to measure all costs associated with an organization's mobility, rather than just those related to vehicles (source: geotab.com/fr/blog/tcm-qu-est-ce-que-le-total-cost-of-mobility/).
We are no longer talking about the cost of a vehicle. We are talking about the total cost of mobility for an employee or a company.
TCM includes:
It also incorporates: telematics data, route optimization, and overall mobility policy. It is a strategic approach.
Fleet managers no longer just oversee a vehicle pool.
They manage:
TCO enables:
We are shifting from a budgetary mindset to a performance-driven one.
The electric vehicle completely changes the cost structure:
According to ADEME, the total cost of ownership for an electric vehicle can be lower than that of a combustion engine vehicle over its lifecycle, largely due to lower energy costs.
However, without a comprehensive view, these savings can be difficult to measure. TCO (Total Cost of Ownership) allows you to integrate:
In an electric vehicle fleet, TCO allows you to:
This allows for better budget control.
Imagine a company with 100 vehicles:
Before TCM:
After TCM:
Impact: structural optimization of expenses.
To deploy a TCM strategy:
Specialized SaaS solutions allow you to centralize all your data.
(banner here to encourage contacting Oriway)
DATA is becoming the heart of fleet management.
The TCO is not truly dead. But it has become insufficient.
In a context of massive electrification, regulatory pressure, and budget optimization, TCM is establishing itself as the new strategic benchmark.
For a fleet manager, adopting TCM means:
Mobility is evolving. Your management should too.
