why prices will reverse in

Electric car news

The French automobile market is preparing to experience a major upheaval. Sales of electric cars currently oscillate between 15 and 20% of the national market, with an average of 17% for the year 2024. A figure which masks a more complex reality, notably a drop in 24,4% sales in November 2024 compared to the previous year.

The impact of CAFE standards on prices in 2025

The CAFE standard will impose a drastic reduction in CO2 emissions, going from 95 grams per kilometer has 81 grammes from January 2025. This constraint puts considerable pressure on car manufacturers. The penalties provided for are severe: 95 euros per excess gram and per vehicle. For French groups, the bill could be steep:

  • Renault risks a fine of 4 billion euros
  • Stellantis may have to pay 2 billion euros

Faced with these potential sanctions, manufacturers have no choice but to adapt their pricing strategy. Thermal models will experience a price increase estimated between 10 et 15% in 2025, while electric vehicles will see their prices gradually decrease.

The news gives financial aid

The ecological bonus evolves in 2025 with a structure based on income:

Income category Bonus amount 2025
First deciles (up to €16,300/share) 4 000€
Intermediate deciles (€16,300 – €24,200) 3 000€
Last deciles 2 000€

Social leasing will also evolve in the second half of 2025. Current very aggressive offers such as Citroën ë-C3 at 54 euros per month will probably no longer be relevant, but electric vehicles will remain accessible around 100 euros monthly.

The price battle between thermal and electric

The price balance between thermal and electric engines is emerging for 2026. This convergence can be explained by several factors:

  • The reduction in battery costs thanks to European production
  • The increase in the prices of thermal vehicles to compensate for the penalties
  • The development of more affordable electric models like the Citroën ë-C3 for less than 20,000 euros

This trend is already being observed in China, where certain electric models have become less expensive than their thermal equivalents. The same phenomenon should occur again in Europe, accelerated by regulatory constraints.

Change in the automobile market is inevitable. European manufacturers must adapt quickly to avoid colossal fines while maintaining their competitiveness against Asian manufacturers. Consumers, for their part, will see their choices naturally oriented towards electricity by the evolution of prices and financial aid.

Written by Albert Lecoq

Specialist in electric car buying guides, I am passionate about new technologies and am a strong supporter of the adoption of electric technology and sustainable mobility.

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