Will the environmental bonus be extended until 2027 or not?

In recent years, several European countries have given up the necessary subsidies to stimulate the energy transition. We can cite Germany, which completely abolished its bonus in 2023 and discounts everywhere else, from the Netherlands to Spain to France…

The question of canceling this very expensive aid for state finances has been on the table for months. Much to the dismay of the car industry, which fears it will suffer a severe wind gap after too short a social leasing stimulus. Negotiations are therefore taking place behind the scenes – our colleagues from Les Echos got their hands on a strategic contract between the state and the sector, which is very interesting in this area.

All indications are that the environmental bonus will remain in force until 2027 (but its amount raises questions)

According to this document, which aims to provide guarantees in the period from 2023 to 2027, the sector as a state commits to several points in black and white. On the one hand, French manufacturers are determined to realize the fully electric future of the automotive sector, without questioning this position of the state.

By 2027, sales of electric cars must increase fourfold and sales of electric vans sixfold. The ultimate goal is to reach 2 million units sold per year by 2030. The counterpart of these efforts, as you can see, is coming: the state commits to maintaining its support, such as the environmental bonus, throughout the period.

Of course, nothing is said about their amount. Previously a maximum of €7,000 (an amount that remains available to the poorest households), this has increased over time to a maximum of €5,000 and then €4,000 in 2024 – subject to conditions. Other aid, such as scrap, also remains on the table. Very effective, social leasing must also return in 2025, according to the document.

Of course, many questions remain, especially in the absence of concrete statements from the government. However, the existence of the document shows that the state has little chance to deviate from this plan and risk exposing itself to a sequence that is very damaging to the image of the executive. But what will actually happen between now and 2027 is obviously not yet fully written.

  • The document obtained by Les Echos reveals the commitments of the automotive industry and the state for the period 2023-2027.
  • On the one hand, the document lists a number of objectives for French car manufacturers with some obligations, such as not challenging the state regarding its strategic decisions.
  • On the other hand, the state is also committed, especially when it comes to maintaining support, such as the environmental bonus, throughout the period.
  • The environmental bonus sees this industry as essential, as it otherwise risks too many difficulties for the category to be profitable.

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