Overview

• The French government's 2025 budget proposes increased taxes on vehicles emitting over 112 g/km of CO2, affecting most gasoline and diesel cars.
• The threshold for CO2 emissions will be gradually lowered to 99 g/km by 2027, with significant tax hikes on heavier vehicles.
• Electric vehicle incentives, including the 'leasing social' program, will continue but with a reduced budget from 1.5 billion to 1 billion euros.
• The 'leasing social' initiative, aimed at helping low-income families lease electric cars, will be renewed but with a focus on targeting the most modest households.
• The automotive industry has expressed concerns over the dual impact of increased taxes on traditional vehicles and reduced support for electric cars, potentially affecting market dynamics.