The premium for the purchase of electric vehicles, of 7,000 euros in 2020, will fall over the next few years, while the CO2 penalty will be increased, the Ministry of the Economy announced on Monday when the 2021 budget project was presented.
"The premium on electric vehicles for individuals will be maintained at 7,000 euros until the end of 2020," said Bruno Le Maire.
"It will increase to 6,000 euros for the whole of 2021 and to 5,000 euros for the year 2022", for a vehicle of less than 45,000 euros, supporting the development of the electric market.
The government is also maintaining a premium of 2,000 euros for all plug-in hybrid vehicles until the end of 2020. It will increase to 1,000 euros in 2021.
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“We will maintain a generous conversion bonus of 3,000 euros for low-income households,” added the Minister of the Economy.
The total envelope for these devices is around 500 million euros, out of a total of 1.9 billion provided for in the recovery plan to support demand for clean vehicles.
The government has also announced an increase in the CO2 penalty, which has been applied since February to all vehicles emitting more than 138 grams of CO2 per kilometer, and goes up to 20,000 euros.
The CO2 threshold will be lowered to 131 grams from January 1, then to 123 grams in 2022.
The market share of electric vehicles has almost quadrupled in one year, underlined Bruno Le Maire, going from 1.8% in 2019 for private vehicles to 6.1% in 2020. Nearly 55,000 electric vehicles have been sold since beginning of the year.
"The demand support has worked," said the minister.
