Sunday, January 19, 2025

France drops state support for small electric cars – can't afford it

In a somewhat bizarre political move, the French government has decided to drop all state support for electric motorcycles and small electric cars like the Citroën Ami.

France has taken the drastic decision to remove state subsidies for certain electric cars. The reason is that the French state can no longer afford to maintain the government's very generous subsidy scheme.

The change follows Decree No. 2024-1084, which reduces subsidies for electric cars and completely eliminates them for two- and three-wheeled vehicles such as motorcycles, scooters and bicycles.

Previously, you could get between 4,000 and 7,000 euros (about 30,000 to 52,000 DKK) in state support for electric cars, but this amount has now been reduced to between 2,000 and 4,000 euros (about 15,000 to 30,000 DKK). Electric bicycles and cargo bikes that have received state support since 2017 will lose their subsidy completely.

The decision has raised concerns in the industry, as analysts fear a domino effect where other countries with tight budgets will follow France's example.

This is what Autodrive writes.

The United States is one of the countries keeping an eye on the situation, as they are also struggling to find a sustainable model for government support for electric cars.

France's decision raises an important question: Can responsible economic policy be reconciled with the desire to promote green transport?

By reducing state support for electric cars, France risks slowing down the development that the EU is otherwise pushing to get through, and creating uncertainty about the future of electric cars and the jobs associated with the car type.

There is enough crisis in the automotive industry in general. Most recently, Porsche announced that the crisis in the Volkswagen Group, which owns the brand from Zuffenhausen, could mean the loss of up to 8,000 employees.

France's situation could be seen as a warning to other countries considering changing their policies when it comes to state support for electric cars. Or maybe the opposite?

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