France Reduces Electric Vehicle Subsidies for 2025
The government limits the bonus ecological budget to €690 million, cutting support for EV purchases and shifting funding sources for certain programs.
- The French government has set a €690 million cap on the 2025 budget for electric vehicle (EV) purchase subsidies, down from €1.5 billion in 2024.
- Revised subsidy amounts will range from €4,000 for low-income households to €2,000 for higher-income buyers, with the changes taking effect after an upcoming decree.
- A social leasing program offering EV rentals for around €100 per month will continue but with reduced public funding, financed through energy efficiency certificates.
- Funding for EV utility vehicles and second-hand electrification will also shift to energy efficiency certificates, with specific details yet to be announced.
- The overall state commitment to automotive electrification will drop to €1 billion in 2025, raising concerns within the struggling automotive sector.
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