In this period of budgetary pressure, the government had warned that assistance for the purchase of electric vehicles would be seriously cut. Therefore the allocation for the bonus will be strictly limited too 690 million euros for 2025 and subsidies may be limited later in the year, the government said on Thursday. “The government wishes to ensure strict compliance with the allocated budget allocation”, in a “difficult budgetary context” and after having noted overruns in recent years, the Ministry of Industry’s office specified during an online press conference.
Unlike the malus, which is a tax, the bonus is not linked to the 2025 budget law, not yet approved, which could bring down the government in the event of a motion of no confidence. And with rare speed, to make further savings, the current government has pressed the publish button the decree about the new rules of this bonus. There will, however, be a tolerance for vehicles already ordered, ”provided that delivery takes place by February 2025″, specified the Ministry of Energy.
“Social leasing” maintained.
The maximum aid is now set at 4,000 euros against the previous 7,000 euros, for the moast modest families. furthermore, the conditions for accessing the bonus are also tightened, with the introduction of a reduction based on income levels. Thus, to benefit from the maximum bonus of 4,000 euros it will be necessary to demonstrate a reference tax income per share of less than or equal to 16,300 euros, compared to the previous 15,400 euros. The aid will be 3,000 euros if the tax revenue is greater than 16,300 euros and less than or equal to 26,200 euros. It will only be 2,000 euros for those who earn more.
To benefit from the bonus, the car must not cost more than 47,000 euros and must also have been eligible for the bonus with the eco-score, an environmental assessment based on the carbon footprint of the car’s production. car.
However, the government claims that the “social leasing” system, which provided for the rental of electric vehicles for around 100 euros per month, will be renewed and will be financed with energy saving certificates (TEE).
The ecological bonus for commercial vehicles disappears. The decree purely and simply cancels the bonus for users, whether private individuals or professionals. However, the government has specified that a new system should be put in place during 2025.
A hard blow for the automotive industry
With this allocation of around 700 million compared to 1.5 billion in 2024 for the purchase of electric vehicles, industry professionals have not hidden their concerns. In an already gloomy market and while EV sales have been trending downward as the summer, manufacturers fear a drop in demand even more. Yet an essential aid for electric vehicles. Carlos Tavares, CEO of the Franco-Italian-American giant, continues to repeat it because the costs are still too high compared to equivalent vehicles with a combustion engine.
Especially since the producers are sitting between two chairs.All European manufacturers are faced with the obligation to drastically reduce the CO2 emissions of their new cars sold next year under penalty of heavy fines. On paper they have to sell between 21% and 23% of their overall sales, otherwise there is a penalty. However, so far, the share of electric car sales is only 13% for Stellantis and 7% for Renault… So much so that the mission without help will become largely unachievable.
The risk is that manufacturers decide to partially scuttle the sales of internal combustion vehicles to hit the target, limiting themselves to selling only four internal combustion vehicles for one electric vehicle. If this were the case, some factories that produce internal combustion vehicles would risk seeing their production reduced, with all the social consequences that this could entail.
How can consumers prepare for upcoming changes in electric vehicle incentives and policies?
Interview Between Time.news Editor and Electric Vehicle Expert
Editor: Welcome to Time.news! today, we’re diving into a pressing topic concerning electric vehicle (EV) subsidies in light of recent government announcements. Joining us is Dr. Emily Raines, a leading expert in sustainable transportation policy. Dr. Raines, thank you for being here.
Dr.Raines: Thank you for having me! It’s great to discuss such an vital issue.
Editor: Let’s get straight to it. The government has announced a notable cut to the electric vehicle purchase assistance, limiting the bonus allocation to just 690 million euros for 2025. What are the implications of this decision for the EV market?
Dr. Raines: This cut comes at a critical time. While it’s necessary for the government to manage its budget efficiently,the reduction in subsidies could deter potential buyers. EVs are still more expensive compared to traditional vehicles, and many consumers rely on these incentives to make the transition feasible. A limited budget means fewer people might take the plunge into EV ownership,which could slow down our progress toward reducing carbon emissions.
Editor: Would you say this is a reaction to budget overruns in previous years? How do you see that shaping future policies?
Dr. raines: Absolutely. The government’s need to clamp down on overspending is influencing its current policies. We have to consider that political stability plays a critical role here as well—if the 2025 budget law doesn’t pass, it could create a ripple effect, even leading to a motion of no confidence. The government is walking a fine line between budgetary obligation and promoting sustainable transportation.
Editor: The announcement also mentioned a degree of tolerance for vehicles already ordered, as long as thay are delivered by February 2025. What does this indicate about the government’s approach?
Dr.Raines: This provision shows an understanding that sudden changes can disrupt consumer confidence. By allowing a grace period for pre-orders,the government acknowledges the existing market dynamics and the commitments consumers have made. It’s a delicate balance of enforcing new rules while encouraging transition to greener vehicles.
Editor: How do you think these developments will effect new EV models coming onto the market in 2025?
Dr. Raines: Manufacturers may start to adjust thier production strategies in anticipation of the subsidy changes. If they see declining demand due to reduced incentives, they might stall new releases or tailor their models to be more cost-effective. This could also prompt a push for innovation in making EVs more affordable or attractive without relying heavily on subsidies.
editor: And what advice would you give to consumers considering purchasing an electric vehicle right now?
Dr. Raines: My advice would be to act swiftly if they want to take advantage of current subsidies, especially given the uncertainty about future allocations. consumers should also research their options thoroughly,looking into energy efficiency,total cost of ownership,and potential savings on fuel. It’s critically important to have all the information before making a decision in this evolving landscape.
editor: Thank you, Dr. Raines,for your valuable insights.It seems that while budgetary constraints are a reality, the push for sustainability must continue.
Dr. Raines: Thank you for having me. Yes, finding that balance is crucial for a sustainable future.
Editor: And thank you to our readers for tuning into Time.news. Stay informed as we track the developments in the electric vehicle market and government policies surrounding it!