France has recently made a significant move by reducing the state-backed discount for electric cars. From a maximum of €7,000 ($7,360) previously, it is now reduced to a maximum of €4,000 with immediate effect. This change has implications for various income groups. For households with medium to higher incomes, the purchase premiums will be €3,000 and €2,000 respectively. In 2025, the purchase of electric cars will still receive a subsidy of €700 million, while in the current year, €1.5 billion were allocated for this purpose.
Market Share and European Comparison
According to official figures, the market share of electric vehicles in new car sales in France has been 17.1% since the start of the year. This is higher than the European average, indicating France's growing interest in electric mobility. The government's efforts to promote electric cars are evident through various initiatives.Leasing Scheme for Low-Income Households
A leasing scheme for e-cars, which began in 2024, is set to continue. Under this scheme, the state leases cars at a remarkably low price of €100 per month. It is specifically targeted at people with low incomes who rely on a car for work and live at least 15 kilometres from their workplace. So far, around 50,000 households have availed themselves of this scheme. The government is still working out the exact modalities for the new edition of the offer in the coming year.Government's Perspective and Future Outlook
The government's decision to reduce the subsidy is part of a broader strategy to balance the budget and ensure the sustainable growth of the electric car market. While the subsidy cut may initially seem challenging, it also encourages the industry to innovate and become more cost-effective. The continued support through the leasing scheme shows the government's commitment to making electric cars accessible to a wider range of people. In the future, France aims to further increase the market share of electric vehicles and play a leading role in the transition to sustainable mobility.
