According to foreign media reports, the French government has reduced the highest electric vehicle subsidy from 7,000 euros to 4,000 euros. At the same time, the French government also plans to reduce the total public aid of automotive electrification next year by one -third, from 1.5 billion euros this year to 1 billion euros.
It is reported that this electric vehicle subsidy issued by the French government is related to the income of the buyer or the lessee, which is also linked to the carbon dioxide emissions generated during the vehicle and battery manufacturing process. At present, the subsidy amount has dropped to “2000 to 4000” euro, lower than the previous “4000 to 7000” euro.
This is part of the wider part of controlling French public expenditure and filling the huge vulnerability of the French budget. However, this adds more troubles to car manufacturers, because they are trying to meet the demand for the downturn. In this regard, the French government sources said: “The French government is still firmly committed to the electrification of light cars, but the budget is limited.”
The revised French electric vehicle subsidy plan has been implemented on November 29, local time. However, as long as the vehicle delivery is completed by the end of February 2025, the French government will provide certain flexibility for consumers who have ordered vehicles, and they may still enjoy the French government’s previous electric vehicle subsidies. According to the French government’s forecast, its newly formulated electric vehicle subsidy plan will help promote the sales of about 200,000 electric vehicles. In contrast, in the first 10 months of this year, nearly 240,000 electric vehicles sold in France.
The French Ministry of Finance believes that lower electric vehicle subsidies are completely reasonable for the people. In October this year, the French Ministry of Finance stated: “Due to the progress of scale economy and battery technology, the cost of electric vehicles has declined. At the same time The necessity of the French government provides electric vehicle subsidies.