Big drop in state aid for electric cars in France: what is still available?

A further reduction in state aid available for electrical vehicle purchases is expected to be confirmed by the government this week and has already been widely reported in French media.

The bonus écologique, paid out when an eligible electric vehicle is purchased, will see grants heavily reduced for purchases by households, and be completely removed for cars purchased for company purposes according to French media Les Echos (paywall article). 

The government has reportedly slashed the budget for electric vehicle aid from €1.5 billion to €700 million, in an effort to find up to €60 billion worth of savings. 

Changes will come into force from 2025, with the changes to be included as part of the 2025 budget.

It comes after an announcement that the other major fiscal aid for switching to an electric vehicle, the prime à la conversion, is to be cancelled from 2025 onwards. 

Read more: One of main aids to purchase an electric car will end in France in 2025

Changes to the bonus écologique scheme were already predicted in October.

Bonuses plummet

Currently, households can receive up to €7,000 via the bonus écologique when purchasing an electric car, if their revenu fiscal de référence (household reference tax income) is less than or equal to €15,400. 

This equates to the 50% ‘most modest’ households in France. For people in this group, the maximum aid is set to drop to €4,000 from 2025

Higher income households will see grants be reduced to €3,000 (for the 50% to 80% households) or €2,000 for the wealthiest households (the highest 20%). 

This is compared to aid of €4,000 now for upper income bands.

Read more: What is the ‘RFR’ figure used by French tax authorities and how to find yours?

The number of hybrid and electric vehicle purchases in France has risen significantly so far in 2024, but a reduction in such aids may see this trend reversed. 

Read more: CHART: Fewer petrol cars being bought in France in 2024