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: Towards a sharp reduction in the bonus for electric cars, says a source

PARIS (Reuters) – will significantly reduce the bonus for the purchase of an electric car in the coming days, with a new scale ranging from 2,000 to 4,000 euros depending on income, compared to a previous range of 4,000 to 7,000 euros, a government source said on Thursday.

The decree setting the 2025 scale, which will also include a new bonus amount of 3,000 euros for intermediate incomes, will be published in the coming days, the source added.

For the highest eligible incomes, the new amount of 2,000 euros for the purchase of an electric car represents a 50% reduction compared to the previous amount.

“The government is resolutely committed to the electrification of light vehicles (…) but the budgetary context is extremely constrained,” declared the government source.

The government's objective for 2025 is to maintain the envelope for total public aid for electrification around one billion euros – 700 million mainly for the bonus, the balance going to support commercial vehicles via the system energy saving certificates, and the financing of “social leasing”.

This year, this envelope should be slightly more than 1.5 billion euros.

Social leasing – or the electric car at 100 euros per month for the most modest households -, a system dear to Emmanuel Macron, will be renewed next year according to terms currently being defined.

Unlike 2024, where the system exceeded its objectives in a few weeks at the start of the year, social leasing will be deployed in 2025 in the second half of the year.

The Automotive Industry Platform (PFA) has regularly warned of a decline in public support for electric vehicles at a time when sales are stagnating and tougher regulations on CO2 emissions are looming.

She cites the German example as proof, where EV sales have suffered a precipitous fall since the country ended its aid program at the end of 2023.

(Report by Gilles Guillaume, edited by Jean-Stéphane Brosse)

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