When it comes to soccer, France and Germany have cultivated a friendly but long standing rivalry. Despite Germany winning more world championships than France, at national matches between both teams France is leading with 14 victories verus Germany’s ten.
A similar race to the top is developing between the two countries when it comes to electric vehicles. Between 2011 and 2018, France recorded slightly higher sales shares of electric passenger cars compared to Germany. But now, according to data for the first ten months of 2019, Germany is a step ahead, with 2.9% of new passenger cars registered being electric compared to 2.7% in France.
Both the French and German teams (aka governments) are employing various tactics to take the lead in electric vehicle sales shares. An upcoming blog post will give an overview of Germany’s current incentive policies intended to spur the electric vehicle market. But what about France?
One key policy of the French government to drive electrification is the bonus-malus vehicle taxation scheme introduced in 2008. It has proven to be one the primary policy instruments in the French transport sector to promote the acquisition of low carbon dioxide (CO2) emission vehicles, such as electric cars, by charging the owners of high CO2 emitting models.
Since its introduction, the bonus-malus system has been adjusted regularly—about every one to two years—to match market developments and balance revenue streams. In 2020, French consumers buying a new car will face two more decisive changes. In January, the CO2 thresholds to determine the bonus-malus tax will be tightened. As a consequence, purchasers of a high emitting vehicle will need to pay significantly higher taxes. Then, in March, the thresholds will be adjusted a second time to more accurately reflect the CO2 emissions of a vehicle, following the new Worldwide harmonized Light vehicles Test Procedure (WLTP).
The first change will involve a shift of the minimum malus threshold, the CO2 level above which vehicle owners have to pay a tax, from 117 to 110 g CO2 per kilometer (km), as shown in the figure below. The maximum threshold that limits the maximum tax a vehicle owner gets charged will also be tightened, by 18 g/km, to 173 g CO2/km. At the same time, the minimum malus to be added to the vehicle’s purchase price will increase from €35 to €50, and the maximum malus will rise from €10,500 to €12,500. The bonus payment will be restricted to only battery and fuel cell cars. Currently, all vehicles below 20 g CO2/km, qualify for a bonus. The maximum bonus will remain unchanged at €6,000.
Please click here to view the full press release.
SOURCE: ICCT
