It was to be feared. During the presentation of the budget at the beginning of October, and the savings measures intended to reduce the public deficit, the government announced that the overall amount of aid devoted to greening new car sales would increase from 1.5 billion euros. this year to around 700 million in 2025.
It remained to be seen how this serious plan would be implemented. It's done. According to information from Les Échos that we are able to confirm, the ecological bonus is significantly reduced, while being more strongly conditioned on the income levels of buyers of electric vehicles. The measures will take effect as soon as the decree is published, “scheduled for this week,” the Ministry of Industry tells us.
“It’s indeed quite a blow”
Until now, this ecological bonus was 7,000 euros for the lowest 50% of households, whose reference tax income was less than or equal to 15,400 euros. It will now be 4,000 euros. The wealthiest households, who could benefit from 4,000 euros, will only receive 2,000 or 3,000 euros depending on the case.
Contacted, the French Automobile Platform (PFA), the French lobby of the sector, refused to make any comment, “until the decree is released”. While admitting that “it is indeed a real blow, since the budget for this aid is halved, in a context of market reduction and stagnation in electric sales”.
Another source is particularly concerned about the fate of 100% electric utility vehicles. This category of vehicles, very popular with craftsmen, but also with SMEs and VSEs, is completely outside the system. “Support for the purchase of electric light utility vehicles will now be financed by energy saving certificates,” confirms those around Marc Ferracci, the Minister of Industry. The terms will be defined in the coming weeks. » Very bad news for the two French manufacturers, Renault and Stellantis, which together represent 70% of the French market.
Stellantis and Renault suffer the blow
Both groups are taking the blame. “For us, with 3,000 euros of aid on average per electric utility vehicle, this represents 8% of all our sales in this category, all technologies combined,” indicates a source at Stellantis. Tomorrow, if the aid allocated to this category decreases further, these same sales will inevitably take a nosedive. Despite all our efforts to reduce costs and margins, our prices are not yet attractive enough to allow craftsmen, or owners of SMEs or VSEs, to invest in this technology. »
Another source from the same manufacturer goes further: “Since 2018, we have been required to sell one electric vehicle for every five thermal vehicles,” she recalls. So if we don't succeed, we will be forced to slow down our thermal sales to maintain this ratio and stay on track. »
End of the conversion bonus
For the entire French automotive industry, which is already in bad shape, this is a cold shower. “The announcement is all the more violent because we thought we still had a few weeks to prepare,” confides another player in the sector. There, we can only submit. » Everyone fears the Chinese threat. “This reduction in aid is the best way to allow them to come and conquer market share with us,” regrets another source. By benefiting from massive aid from Beijing, they can now offer very inexpensive vehicles. It's going to be even harder to compete. »
In government, these decisions are justified by the state of public finances. “The 2024 budget initially planned for the automobile bonus was exceeded by more than 400 million euros,” the Ministry of Industry is reminded. Given this very large overrun and budgetary constraints, the government had no other option than to reduce the envelope planned for 2025.”
The principle of renewing social leasing (electric cars at 100 euros per month for low-income households) has, however, been adopted. But with terms which will also be revised significantly downwards. The system will in fact have cost 650 million euros in 2024, for 50,000 cars concerned. On the other hand, the conversion bonus (formerly called “scrapping bonus”) disappears permanently.
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