France Cuts EV Subsidies for Wealthy, Maintains Support for Low-Income Buyers
The French government has adjusted its electric vehicle (EV) subsidy scheme. Environment Transition Minister Christophe Bechu announced the changes, aiming to make the transition more affordable for lower-income individuals. The move comes amidst budget constraints and follows Germany's early termination of its own EV subsidy program.
The French government has reduced the EV subsidy for higher-income buyers by 20%. The subsidy now stands at 4,000 euros, down from 5,000 euros. This decision was taken to avoid overshooting the 1.5 billion euro budget for EV incentives. Meanwhile, the subsidy for lower-income buyers remains unchanged at 7,000 euros.
Regional governments, like those in the Paris area, continue to offer additional subsidies ranging from 2,250 to 9,000 euros. However, the government has halted a new electric car leasing subsidy program for low earners due to high demand. This follows Germany's early termination of its electric car subsidy program in December, which included subsidies for purchasing electric company cars and replacing older internal combustion engine vehicles.
The French government's subsidy reduction aims to balance the budget while encouraging EV adoption among lower-income groups. Regional governments continue to support EV purchases, but the halt on a low-income leasing subsidy program indicates the need for careful management of these incentives.
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