France Tightens Auto Emission Taxes, Reduces Electric Vehicle Incentives

The 2025 budget introduces stricter CO2 penalties for gas and hybrid cars while cutting subsidies for electric vehicles to prioritize low-income households.

The French government's 2025 budget proposes increased taxes on vehicles emitting over 112 g/km of CO2, affecting most gasoline and diesel cars.
The threshold for CO2 emissions will be gradually lowered to 99 g/km by 2027, with significant tax hikes on heavier vehicles.
Electric vehicle incentives, including the 'leasing social' program, will continue but with a reduced budget from 1.5 billion to 1 billion euros.
The 'leasing social' initiative, aimed at helping low-income families lease electric cars, will be renewed but with a focus on targeting the most modest households.
The automotive industry has expressed concerns over the dual impact of increased taxes on traditional vehicles and reduced support for electric cars, potentially affecting market dynamics.