Electric cars: the government is preparing to cut the ecological bonus

The electric car has not been able to avoid the wall of budgetary realities. The government would have recorded a reduction of 1,000 euros in the ecological bonus for the purchase of an electric car, which would go from 5,000 to 4,000 euros on 1^er January, according to three sources familiar with the matter. A ministerial source specifies that the arbitration was made Thursday by Matignon.

The bonus of 7,000 euros for low-income households (below the sixth income decile) would be preserved, even if there had initially been talk of increasing it. On the other hand, the aid of 1,000 euros for the purchase of a used electric car would be eliminated.

The ecological bonus is in some ways a victim of its success. In recent weeks, the Ministry of the Budget has had to concede a budgetary extension of 400 million euros for 2023 to deal with sales of electric cars. These should reach 17% of total sales this year, compared to 16% planned by the executive.

A presidential promise of 260 million

The dedicated budget line in 2023 will therefore ultimately amount to 1.7 billion euros, compared to 1.4 billion initially planned. However, the 2024 envelope will amount to “only” 1.5 billion, or 200 million less. Even though the government at the same time expects battery cars to reach 21% market share.

To further complicate the equation, leasing at 100 euros, Emmanuel Macron’s campaign promise which will apply from 1^er January, will be financed by the same budgetary program as the bonus. It will cost 260 million euros next year.

Less money than in 2023 and more cars to subsidize… To maintain the budget, Bercy could only reduce the check per car. At the end of 2022, he had already reduced the bonus by 1,000 euros for 2023.

Half as many eligible vehicles

However, some still hoped in recent days to escape a reduction in the amount of the bonus in 2024 thanks to the tightening of the system presented in the fall. From 1^er January in fact, only cars whose manufacturing has emitted less CO2 will be able to benefit from it. A reform aimed at no longer subsidizing vehicles produced outside Europe. According to AAA Data, from 80% of vehicles sold which could benefit from the bonus in 2023, we will drop to 41% in 2024.

In any case, this new blow is an unpleasant surprise for the automotive sector. However, it is much worse in Germany, where the government has brutally removed all aid for the purchase of electric cars to get out of its budgetary impasse.