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France Ends Vehicle Conversion Bonus
France will end its vehicle conversion bonus program in 2025, shifting focus to ecological bonuses and social leasing to encourage electric vehicle adoption.
French
France
Climate ChangeFranceEnergy SecurityElectric VehiclesBudgetGovernment PolicyEnvironmental Initiatives
French GovernmentBercy (French Ministry Of Economy And Finance)Pfa (Plateforme De La Filière Automobile)
Emmanuel MacronMichel BarnierLuc Chatel
- Why is the government eliminating the conversion bonus?
- The elimination of the conversion bonus program is a budgetary decision. The 150 million euros allocated to it in 2024 are being redirected to other initiatives designed to encourage the adoption of cleaner vehicles. This shift reflects the government's overall approach to reducing CO2 emissions.
- What are some potential concerns about the changes to the incentive programs?
- Concerns exist that reducing the budget for incentives and eliminating the conversion bonus could negatively impact electric vehicle sales in France. The government hopes to counteract this with the use of energy saving certificates and adjustments to existing programs.
- What is the French government's plan for the "prime à la conversion" program?
- France's "prime à la conversion" (vehicle conversion bonus), a program that offered incentives for trading in older vehicles for electric ones, will be discontinued in 2025. This decision was made due to budgetary constraints and a government focus on simplifying incentives.
- What are the main incentives for purchasing or leasing electric vehicles in 2025?
- The government plans to focus on the ecological bonus and social leasing programs in 2025, with a budget of 1 billion euros. This budget is intended to support the acquisition of electric vehicles and will likely involve reduced incentives compared to 2024.
- How many people benefited from the conversion bonus and the leasing social program in 2024?
- In 2024, the conversion bonus program benefited 45,000 people, while the leasing social program enabled 50,000 to acquire electric vehicles through long-term leases. These programs aided the transition to cleaner vehicles, but their combined cost exceeded initial projections.