Home Automobile Electric cars: why is the government cutting aid? Auto Plus news in your smartphone Auto Plus news in your inbox

Electric cars: why is the government cutting aid? Auto Plus news in your smartphone Auto Plus news in your inbox

0
Electric cars: why is the government cutting aid?  Auto Plus news in your smartphone Auto Plus news in your inbox

The environmental bonus in France will be significantly reduced in 2024. Really, this aid will increase from €5,000 to €4,000 for new vehicles up to €47,000. Despite maintaining the €7,000 premium for low-income households, this reduction will not be without consequences.

As we told you a few days ago on Auto Plus, this new, more “protectionist” bonus should lead to reduced sales of some electric cars in France next year.

Bonus 2024 in a few words

The government decided to redraw the contours of the environmental premium rules for 2024, including more precise criteria. This new version of the bonus is its focus on cars with the best carbon footprint.

Various environmental criteria are taken into account, such as the materials used, the type of battery, the energy consumption of the factory and the impact of vehicles. In other words, This measure is aimed at eliminating cars made in Chinaincluding the three models mentioned above.

About 65% of electric cars sold in France are eligible for the new bonus. The list can also be found in our special article.

Aid that will soon disappear?

But why is the government cutting this aid when the environmental goals are so high? There are several reasons for this, and they are primarily economic. A few days ago, Germany gave us a good example of this.

The first reason that could explain the disappearance of the environmental bonus is related budget constraints which the French government may face. In times of economic hardship, tax benefits such as the environmental bonus may be called into question to reduce pressure on public finances.

Another reason: the rapid development of technologies related to electric cars. If further progress makes electric cars more affordable without requiring significant subsidies, The government could consider that the environmental bonus is no longer necessary to stimulate the market.

And this is exactly what is happening today with these famous “affordable” electric cars, that is, available for less than 25,000 euros without bonuses. You can call Renault 5 E-Tech, as well as Citroën ë-C3.

In general, it is difficult to imagine the French state to subsidize electric cars for the coming years, the number of which is likely to increase and sell in the same way as market stars such as Dacia Sandero, Renault Clio and other Peugeot 208s.

Read also:
ZFE: According to some, they would benefit the auto industry
ZFE radars: how to spot them accurately?
ZFE: What is the future impact on our way of life?

Author: Yann Lethuyer
Source: Auto Plus

LEAVE A REPLY

Please enter your comment!
Please enter your name here