The End of the Eco-Bonus for Company Cars

The government has adjusted the financial incentives for purchasing electric vehicles, with a focus on a more equitable distribution of subsidies. 

The eco-bonus, which was previously universal, is now adjusted based on household income. According to a recent decree, the bonus amount has been reduced to 4,000 euros for the wealthiest households, while those with a reference taxable income per share of 15,400 euros or less are eligible for a 7,000-euro bonus. In addition, the scrappage incentive is now only available to buyers of electric vehicles, thereby replacing low-emission internal combustion or hybrid vehicles.
 

These changes are also accompanied by stricter environmental criteria, which notably exclude models manufactured in China. In addition, the maximum price for eligible vehicles is now set at 47,000 euros. The Minister of Ecological Transition, Christophe Béchu, emphasized that these adjustments aim to ensure a more equitable distribution of subsidies while promoting the transition to cleaner vehicles.
At the same time, the government has suspended the “social leasing” program, which offered electric cars for lease with an option to purchase at affordable rates for low-income households. This suspension follows a six-week period during which more than 50,000 orders were confirmed, exceeding the initial targets set.
 

To keep the overall budget for vehicle purchase subsidies at 1.5 billion euros, other programs had to be adjusted or eliminated. This includes a reduction in the maximum amount of the trade-in incentive, as well as the elimination of the bonus for companies purchasing passenger cars.
These changes have elicited mixed reactions from automotive professionals, with some expressing regret over the reduction in purchase incentives. 

However, the government has also introduced new measures, such as extending the retrofit incentive for vehicles converted to plug-in hybrids, as well as expanding the bicycle incentive to include the purchase of used bicycles from professionals, subject to certain conditions.