- Photo credits DS Automobiles

Car manufacturers criticize France's very high environmental taxes on cars

Some brands are going to be heavily penalized

1y ago

Many car manufacturers have criticised the French government for further increasing taxes on the heaviest and most polluting vehicles. Cars emitting more than 184g of CO2/km (294g of CO2/mi) will be subject to a heavy tax of €20,000 (£17,000/$23,400) from 1 January 2020, which is significantly higher than the current €12,500 (£10,700/$14,000).

At the same time, the French government is considering reducing incentives for the purchase of electric vehicles. These measures will particularly affect SUVs, as they are taller and heavier and therefore pollute more than a traditional car. Despite this, they are very popular in France with 30% of sales in the first 11 months of 2019 according to Inovev.

According to Luc Chatel, head of the French car organisation PFA, this is a double penalty for consumers. The electrical market will not take off without strong incentives to buy. Everyone will lose: the industry, the environment and the purchasing power of the French. He considers this new policy to be illogical.

According to the French Ministry of Finance, this new malus could bring in no less than 50 million euros per year for the government. Aid for the purchase of an electric car will also be reduced since high-end cars - those costing more than €45,000 (£38,500/$50,400) - will no longer be eligible for the €6,000 (£5,100/$6,700) eco bonus.

Photo credits Peugeot

Photo credits Peugeot

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