Electric cars, France cuts incentives. Profitability of social leasing in 2025 November 30, 2024 0

Accounts must be totaled and Francefighting one series of budget problemshe decided cut the fund intended to promote the adoption of electric vehicles. Thus, the government has budgeted about one billion euros for next year, compared to 1.5 billion in 2024. Of the new budget, 700 million will go to real incentives in any case tied to income (the government estimates it is about 200 thousand BEVs), and the remaining 300 million will go to light electric commercial vehicles and social leasing, which will be extended.

Next year”environmental bonus“will be paid based on the buyer’s income and will also be linked to a certain “environmental performance” of the cars (CO2 emissions resulting from the production of vehicles and batteries), which in any case should not cost more than 47 thousand euros. Options In addition, new incentives will be included from 2000 to 4000 euros against the previous 4000/7000 euros. However, the Ministry of Finance believes that the reduction in benefits should not negatively affect sales, given that the cost of BEVs has decreased.

Thanks to economies of scale and battery development, the cost of electric vehicles has fallen and their share of total vehicle sales has increased, reducing the need for subsidies.

France will also update the social leasing instrument, which it was successful at the time of its appearance, but what it turned out to be costs the state treasury a lot. As we know, this is a tool created by the government to encourage the use of electric vehicles even by low-income people.

Apparently, it will be updated in the second half of 2025. This year, 650 million euros were spent on 50,000 affordable electric vehicles. The available fund will be significantly smaller next year, but more will be known over the next few months.