France will grant an additional €1,000 ($1,090) subsidy for the purchase of electric cars assembled in Europe and equipped with European-made batteries from Oct. 1, the government said on Monday. The measure adds to the existing “bonus écologique” scheme that offers households up to €4,200 depending on income and environmental criteria.
“Ecological transition is a lever for reindustrialisation,” said Agnès Pannier-Runacher, Minister for Ecological Transition. “By increasing the environmental bonus by €1,000, we are promoting electric vehicles whose batteries are produced in Europe and whose manufacture emits fewer greenhouse gases. This is a win-win situation for purchasing power, the climate and industry.”
The move comes as France faces slowing demand for electric cars. Registrations in the country declined 4.3% between January and July this year, according to ACEA figures. In July, Paris raised the main subsidy back to between €3,100 and €4,200 after cutting it earlier in the year. The extra €1,000 now lifts the maximum state support to €5,200 for eligible cars.
The government said a list of qualifying vehicles would be published and updated monthly by ADEME, France’s environment and energy agency. While the pool of models with European-made batteries remains limited, officials argue the measure supports Europe’s push for strategic autonomy. “France defends this vision and reaffirms that production is a prerequisite for sovereignty,” the outgoing cabinet said in a statement.
Industry Minister Marc Ferracci also highlighted the industrial and energy benefits of the scheme. “I am fighting for Europe to prioritise sovereignty and reconcile industrial jobs with the energy transition,” he said. “Electric vehicles are crucial to the decarbonisation of our economy and can benefit from competitive, carbon-free French electricity.”
The announcement came on the same day Prime Minister François Bayrou lost a parliamentary confidence vote. His cabinet will remain in office until a successor government is nominated. Alongside the subsidies, Paris has revived its leasing programme for low-income households, pledging €370 million to support at least 50,000 electric cars, with applications opening Sept. 30.
Source: 20minutes.fr, lefigaro.fr, presse.economie.gouv.fr