Electric vehicles may be gaining popularity worldwide, but the path to mass adoption remains challenging. In Europe, where EV incentives have historically fueled sales, several countries are planning to scale back or overhaul their subsidy programs in 2025, a shift that could hinder growth in one of the key markets for electrification.
France is leading the charge with some of the most significant changes. As part of its 2025 national budget, the government is slashing its EV subsidy program’s budget from €1.5 billion to €1 billion. Currently, French buyers can receive between €4,000 (around $4,200 at current exchange rates) and €7,000 ($7,300) in subsidies for EVs priced under €47,500 ($49,900). In 2025, those subsidies will be cut nearly in half, dropping to between €2,000 ($2,100) and €4,000 (~$4,200).
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