- France’s 20 per cent EV subsidy was introduced so they could purchase electric and hybrid vehicles to avoid overrunning the country’s budget.
- A government regulation lowered the subsidy from 5,000 euros to 4,000 for the 50 per cent highest-income car buyers.
The French government today cut electric vehicle (EV) subsidies for higher-income car buyers by 20 per cent. This is so they can purchase electric and hybrid vehicles in order to keep them from overrunning their budget to boost the number of electric cars on the road.
A government regulation lowered the subsidy from 5,000 euros ($5,386) to 4,000 for the 50 per cent highest-income car buyers but left the subsidy for people on lower incomes at 7,000 euros.
Environmental Transition Minister Christophe Bechu said France has offered various incentives to buy electric vehicles but also wants to ensure it does not overshoot its 1.5 billion euro budget for the purpose at a time when its overall public spending targets are at risk.
While some individuals express reservations about the government’s purchase subsidy for electric vehicles (EVs), several regional governments persist in providing supplementary incentives. In the Paris area, these incentives vary between 2,250 and 9,000 euros, contingent on an individual’s income.
This recent development follows the government’s decision to halt a new program aimed at subsidizing electric car leases for low earners throughout the remainder of the year. This decision was prompted by an unexpectedly high demand that exceeded the initial program allocations.