Brief Description

On January 9th, it was announced that France had introduced a new regulation at the beginning of the new year: expanding the scope of the “ecological tax” to include heavy and high-emission vehicles. Even some popular low-cost models are not exempt from this misfortune. This policy, which came into effect on January 1st, aims to encourage people to purchase electric cars and combat vehicles that do not meet emission standards and pollute the environment.

The 2024 French EV New Policy is a one-time punitive tax targeting large emission vehicles. According to the new regulations, starting from January 1st, vehicles emitting 118 grams of carbon dioxide per kilometer will be subject to a fine of €5 (approximately ¥39) per kilometer. As carbon dioxide emissions increase, the amount of fines will significantly rise with a maximum penalty reaching €60,000 (approximately ¥470,000). Additionally, vehicles weighing over 1600 kilograms will need to pay an additional fine ranging from €10 to €30 per kilogram.

This means that a large number of vehicles will be affected, including the entry-level Peugeot 208 with a starting price of €19,200. The version with a 1.2 PureTech engine producing emissions of 120 grams/kilometer will face a fine of €100. A similar fate awaits the Dacia Sandero SCe75 priced at €11,990 as it also needs to pay a fine of €100.

Additional Information

In fact, France has been imposing punitive taxes on large and bulky fuel-powered vehicles since 2022. However, this year’s new regulations will include vehicles weighing over 1600 kilograms within the scope of taxation. This means that many SUVs and large cars will not be able to escape their fate, and this punitive tax will be calculated in addition to the existing fines for carbon dioxide emissions. For vehicles weighing between 1600 and 1799 kilograms, a fee of €10 per kilogram exceeding the limit is required, while vehicles weighing over 2100 kilograms face a hefty fine of €30 per kilogram.

It is worth mentioning that hybrid vehicles will not be penalized for their excess weight this year. Similarly, there is no need to worry about fines for large electric cars or plug-in hybrid vehicles of any size. Models exempt from carbon dioxide emissions and weight penalties include pure electric vehicles (BEV), fuel cell electric vehicles (FCEV), and plug-in hybrid vehicles (PHEV). For PHEV models, their pure electric range must exceed 50 kilometers, which covers almost all models available on the market. Additionally, the government also provides special exemptions for larger families in need of bigger vehicles.

French President Macron has announced a series of new incentives aimed at encouraging consumers to purchase electric vehicles manufactured in France and Europe. These measures include a monthly leasing subsidy of 100 euros for electric vehicles produced within the European Union. The French government has also declared that substantial cash rewards will be provided to first-time buyers of electric cars, on the condition that the purchased vehicle is made in the EU.

Conclusion

These measures undoubtedly provide a dual benefit to the electric vehicle market. On one hand, they reduce pollution on the roads by penalizing gas-guzzling vehicles, and on the other hand, they incentivize consumers to choose electric cars, thereby accelerating the development of electric vehicle technology in the automotive industry. After all, France has set an ambitious goal of producing over 1 million electric vehicles by the end of 2027.