France Cuts Electric Car Subsidies Amid Budget Crunch

France is reducing electric car purchase subsidies to balance its budget. The new scale ranges from 2,000 to 4,000 euros based on income, a decrease from the previous 4,000 to 7,000 euros. The reduction aims to manage public spending while continuing to support vehicle electrification.

France is set to lower its financial support for electric-car purchases as part of broader efforts to address budget shortfalls. Starting in the coming days, subsidies will range from 2,000 to 4,000 euros based on income, down from the former range of 4,000 to 7,000 euros.

A government source indicated that this decision is part of a strategy to rein in public spending while maintaining a commitment to the electrification of light vehicles. This adjustment arrives as manufacturers face challenges with slowing demand for electric vehicles.

The government plans to allocate around 1 billion euros for vehicle electrification by 2025, a decrease from this year's figure of slightly over 1.5 billion euros, directing about 70% towards purchase bonuses and supporting low-income households through a social leasing plan.

(With inputs from agencies.)