France plans to cut subsidies for electric vehicle (EV) purchases, lowering bonuses to a range of €2,000 to €4,000 based on income, a government source said on Thursday. This adjustment marks a reduction from the previous €4,000 to €7,000 range as the government moves to address fiscal challenges.
“The government remains firmly committed to the electrification of light vehicles … but the budgetary context is extremely constrained,” the official stated during a briefing.
The reduction is part of a broader effort to rein in public spending and narrow a significant budget deficit. In 2025, France aims to allocate around €1 billion to support vehicle electrification, a notable decline from over €1.5 billion this year.
Approximately 70% of the new budget will be dedicated to purchase bonuses for EV buyers, while the rest will fund initiatives for commercial vehicles and a social leasing program aimed at low-income households.
The policy shift comes as automakers contend with tepid EV demand. Industry analysts point to Germany, where EV sales dropped by 28% following subsidy reductions, as a potential warning for France.
The government’s revised spending plan underscores its focus on balancing environmental priorities with fiscal responsibility.
