Struggle in France: Navigating the Aftermath of Decreased Electric Vehicle Incentives Reduction

In a surprising turn of events, France's electric vehicle (EV) market has experienced a significant drop, with registrations plummeting by 32.5% in August 2024 compared to the same period in 2023. This decline, according to Cecil Coulet, Head of European Public Affairs at Équilibre des Énergies, may be attributed to the recent modifications in the eco-bonus, a valuable aid for sustainable mobility.

The eco-bonus, which once covered up to 27% of the purchase cost of an electric car, has undergone significant cuts. Not only has the overall amount been reduced, but it has also been restructured to favour lower-income households. High-income households, for instance, have seen their incentive decreased from 5,000 to 4,000 euros.

Plug-in hybrids have been particularly affected, experiencing five consecutive months of decline. This trend is concerning, as these vehicles are often the first step towards fully electric mobility. The conversion bonus, which facilitated the transition from polluting cars to electric models, has also been modified.

France, a leading country in promoting electromobility, is not new to these changes. In fact, as of October 2025, the country is introducing an additional €1,000 bonus for the purchase of electric vehicles assembled in Europe and equipped with European batteries. This move aims to support local industry and lower-emission production.

However, the right moment to remove incentives is when the total cost of ownership of an EV is on par with that of a combustion vehicle. Clemént Molizon, General Delegate of Avere-France, emphasizes the need to leverage new models and maintain budgetary continuity and solid commitments.

The cost of an urban electric car in France is around 35,000 euros, and the minimum value for SUVs is about 40,000 euros. Fortunately, there are more affordable options available, such as the Dacia Spring starting at 20,800 euros, the Renault Twingo E-Tech at 25,250 euros, the Leapmotor TO3 at 25,990 euros, and the Volkswagen e-up electric at 27,400 euros.

President Emmanuel Macron has excluded imported cars from China from the subsidy, citing environmental and weight requirements. However, the exclusion of these vehicles has not helped in facilitating the transition to electric mobility.

Price differences between electric models in France are considerable, with luxury cars like the Mercedes EQS exceeding 135,000 euros. The changes to the eco-bonus, a valuable aid for sustainable mobility, have impacted both individuals and businesses.

As the market adapts to these changes, it is crucial to remember the long-term benefits of electrifying our transportation sector. The challenges faced today are a testament to the need for continued support and commitment to a greener future.

Struggle in France: Navigating the Aftermath of Decreased Electric Vehicle Incentives Reduction