The French government has just revealed the terms of the 2025 ecological bonus for the purchase of electric vehicles. In a difficult budgetary context, this is unsurprisingly lowered and will come into force from November 29, 2024. The bonus for LCVs has been removed, replaced by a support system financed by energy saving certificates. energy (CEE).
The budgetary envelope linked to the bonus will increase from 1.4 billion euros in 2024 to 700 million euros next year. ©Citroen
“We must do a lot and if we cannot do a lot, we must do well and do with a little in an economy of resources“. Michel Barnier announced it during his general policy speech on 1is last October. France's finances are in the red. The budget must therefore be tightened in 2025. And the ecological bonus will not escape this.
The heavily reduced budget envelope
The French government has just formalized the terms of the automobile bonus for 2025. First, the budget for aid for the purchase of electric vehicles has been halved, going from 1.4 billion euros in 2024, to 700 million euros for next year.
However, if the 2024 budget envelope included funding allocated to all bonuses (VP and VUL) and social leasing, that of 2025 will be exclusively reserved for the VP ecological bonus. In total, the State should devote one billion euros to the transition of the vehicle fleet, compared to 1.5 billion last year.
The new bonus will therefore come into force on November 29, 2024 upon publication of the decree in Official Journal. However, a tolerance will be granted to vehicles which have already been ordered but which have not yet been delivered, provided that their delivery takes place before the end of February 2025. The 2025 bonus could help finance the purchase of around 200,000 electric cars over the year, according to government estimates.
A bonus depending on the income of the French
It will thus be subject to new scales, which will depend on the income of the French. The purchase of electric vehicles produced in Europe will then be supported to the tune of 4,000 euros for the most modest incomes (deciles D1 to D5).
Those located between deciles D6 to D8 will benefit from aid of 3,000 euros, while the rest of French households will be entitled to a bonus of 2,000, a drop of 2,000 euros compared to 2024. Furthermore, only models benefiting from the environmental score will remain eligible for the bonus.
The government will nevertheless ensure that the envelope dedicated to the bonus is strictly respected and subsidies could thus be limited during the year if the budget is exceeded. “The government wishes to ensure strict compliance with the allocated budget envelope“, in a “difficult budgetary context” and after having noted excesses in recent years, specified the office of the Ministry of Industry.
No more bonuses for LCVs but…
The big novelty of this 2025 ecological bonus mainly concerns assistance with the acquisition of light utility vehicles. Deprived of assistance for the purchase of private cars in February 2024, professionals will have nothing from next year.
The government has in fact formalized the elimination of the bonus for LCVs in 2025. On the other hand, light utility vehicles can now be acquired via a “support device” financed by Energy Saving Certificates (CEE).
As mentioned previously, this system will not, however, fall within the budgetary envelope of 700 million euros. As for these terms, they will be specified later.
Social leasing renewed
Victim of its success in 2024, the social leasing system will be renewed for a second consecutive year, starting in the second half of 2025.We hope that the counter will be able to stay open longers”, underlined the cabinet of the Ministry of Energy. However, the government, which admitted to having been “very generous“for its first year of introduction, suggested that”the amount of public support per vehicle will be lower“.
As with the support system for LCVs, it will not fall within the envelope of 700 million euros, but will also now be extra-budgetary. Social leasing will therefore be financed by Energy Saving Certificates (EEC), while its terms are still being studied.
A bonus for the retrofit
Finally, the retrofit bonus system has also been retained by the government. Of the budgetary envelope of 700 million euros allocated to the bonus, ten million will be dedicated to retrofitted vehicles.
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