At the beginning of October, we were already able to report that France will again reduce the subsidy amount for the purchase of electric cars. From the current 7,000 to 6,000 euros from 2021, and then to 5,000 euros from 2022. The subsidy for plug-in hybrids will fall from 2,000 to 1,000 euros from 2021. But France does not only want to cut premiums in the future, it even wants to issue new ones. According to Transport Minister Jean-Baptiste Djebbari, a new subsidy of 1,000 euros is planned. This is to come into effect if one wants to buy a used, purely electric car.
Such a premium was first discussed in September of this year as part of a large-scale package of measures to revive the economy. In the meantime, it seems that a step forward has been taken, moving from discussion to implementation. Jean-Baptiste Djebbari, Assistant Minister of Transport, has announced to the newspaper Le Parisien that a new subsidy of 1,000 euros for used electric cars will come into force. The 1,000 euros will be paid out without a means test. The necessary change is to come from France’s 100 billion euro economic stimulus package, for which “2 billion euros for clean cars” have been blocked, as Djebbari points out.
A look at the current registration figures shows that the French promotion concept seems to be working. Bloomberg recently quoted from a statistic of the industry group CCAF. It found out that electric vehicles had a 6.1 per cent share of the French market in terms of registrations in the first eight months of the year. In the same period of the previous year, the figure was 1.9 per cent. The share could increase further.
This is because the penalty tax is known as the “malus écologique” (environmental penalty tax) could soon reach dizzying heights, which is incurred when buying a particularly polluting combustion engine, such as oversized SUVs or powerful sports cars. One would certainly think twice about such a purchase.
Source: electrive.net – France: Flat rate of 1,000 euros for the purchase of used electric vehicles
Comment: We think France is going the right way, to provide flat-rate subsidies for used electric cars. This will enable a faster move towards the e-mobility.