In September 2023, in order to protect domestic vehicle manufacturers, the French government considered a new subsidy decree on subsidizing the purchase of new electric cars. Citizens with low incomes would have subsidies of up to 7,000 euros, while for others it would be 5,000 euros. However, the French government made a new decision that will cut subsidies to 4,000 euros for those with high incomes.

The original decision was changed because it was estimated that the budget of 1.5 billion euros would be insufficient. The new decision cut the subsidy for higher-income buyers by 20 percent to stay within budget and increase the number of electric vehicles on the road. Meanwhile, subsidies for the purchase of electric company cars are also being cut, as are bonuses for the purchase of new cars with internal combustion engines to replace older, more polluting vehicles.

Also, the government halted a new program to subsidize the purchase of leased electric cars for low-income people until the end of the year, after demand far exceeded initial plans. Bonuses for electric vehicles can vary from 2,250 to 9,000 euros, depending on the buyer’s income.

Source: Reuters