France increases bonus e-car purchase to €7 000

In France, the ecological bonus will be raised from 6 000 to 7 000 euros for half of the most modest households buying an electric car. French President Emmanuel Macron announced this in an interview with the daily Les Echos.

“Because we want to make the electric car accessible to all, we will even raise the ecological bonus from 6 000 to 7 000 euros for half of the households, the most modest,” said the head of state, who will attend the opening of the Paris Motor Show on Monday.

‘Buy cars made in Europe’

The bonus is valid for vehicles sold for less than 47 000 euros, i.e. compact electric cars or SUVs, such as the Renault Mégane or the Peugeot 2008, but not a Tesla.

Mr. Macron is also calling for a strengthening of “European preference”, i.e. the advantages of buying cars made in Europe. This year’s Paris Motor Show has many Chinese manufacturers who want to launch their e-models on the European market. Chinese electric vehicles accounted for 5% of all new battery EV registrations in western Europe over the opening seven months of 2022.

“The Americans are buying American and pursuing a very offensive strategy of state aid,” explained Emmanuel Macron. “The Chinese are closing their market. We cannot be the only area, the most virtuous in terms of climate, which considers that there is no European preference.”

“I strongly defend a European preference in this area and strong support for the automotive industry. We must assume this, and it must happen as soon as possible,” Macron added.

For your information: Americans who purchase a new all-electric or plug-in hybrid car may be eligible for a federal income tax credit of up to 7 500 dollars.

Record market share

The bonuses have helped the electric car market to take off in many countries, even though they are still much more expensive to buy than their gasoline or diesel equivalents. But several governments have already reduced the amount of aid.

The annual barometer conducted in 18 countries worldwide by the Cetelem Observatory, the results of which were released last week, still warns that “there is a risk that an economic and social divide will be created concerning the car, pushing to the margins those who need it most in their daily lives.”

And even though France is the second country with the most public charging points in Europe, still 98% of all cars registered in France run on fuel. However, plug-in electric car sales in France achieved a record market share of 18,3% in 2021.

Tariff shield at e-stations extended

Mr. Macron also announced that the tariff shield on energy prices from January 2023 will also be extended to recharging at electric stations. “Today, the prices remain reasonable, we will ensure that they remain so,” said the head of state.

In general, prices at public charging stations have shot up almost 25% in two months. 

Car rental at 100 euros per month for the most modest households in France should also be launched in the second half of 2023.

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