
The French government plans to cut subsidies for electric vehicle purchases by one-third in 2025 while increasing penalties for high carbon-emitting cars. This year, France's maximum EV purchase subsidy can reach 1.5 billion euros, which will be reduced to 1 billion euros next year. The reason is that EV costs have declined and market share has increased, reducing the need for subsidies. Currently, subsidies are linked to income and carbon emissions, with future priority given to the poorest households.
France will further lower the threshold for environmental fines and raise maximum tax rates to promote greener vehicles in the market.
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