Big drop in state aid for electric cars in france: what is still available?

REDUCTION IN AID FOR BUYING AN ELECTRIC CAR TO DROP UP TO €3,000 FOR SOME HOUSEHOLDS A further reduction in state aid available for electrical vehicle purchases has been confirmed by the

government today (Wednesday November 27). The bonus écologique, paid out when an eligible electric vehicle is purchased, will see grants heavily reduced for purchases by households, and be

completely removed for cars purchased for company purposes. A decree in the Journal Officiel  will be published "in the coming hours" to confirm the changes, announced government

spokesperson Maud Bregeon to media outlet Franceinfo. Changes will come into force immediately after the decree is published the spokesperson added, impacting electric vehicle purchases for

the rest of 2024. It comes after an announcement that the other major fiscal aid for switching to an electric vehicle, the prime à la conversion, is to be cancelled from 2025 onwards.  Read

more: One of main aids to purchase an electric car will end in France in 2025 The government has reportedly slashed the budget for electric vehicle aid from €1.5 billion to €700 million, in

an effort to find up to €60 billion worth of savings.  BONUSES PLUMMET Currently, households can receive up to €7,000 via the bonus écologique when purchasing an electric car, if their

revenu fiscal de référence (household reference tax income) is less than or equal to €15,400.  This equates to the 50% ‘most modest’ households in France. For people in this group, the

maximum aid is set to drop to €4,000 from 2025 Higher income households will see grants be reduced to €3,000 (for the 50% to 80% households) or €2,000 for the wealthiest households (the

highest 20%).  This is compared to aid of €4,000 now for upper income bands. Read more: What is the ‘RFR’ figure used by French tax authorities and how to find yours? The number of hybrid

and electric vehicle purchases in France has risen significantly so far in 2024, but a reduction in such aids may see this trend reversed.  Read more: CHART: Fewer petrol cars being bought

in France in 2024