France raises electric and hybrid vehicle subsidies
Mon 30 July 2012
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The new French Government has increased the cash incentives available to buyers of electric cars from €5,000 to €7000 (£5500) in a new move which was presented as an attempt to boost the flagging French car industry. Subsidies to encourage the purchase of hybrid vehicles have also been increased from €2,000 to €4,000.
The French Government is reported (by Reuters) to be grappling with the imminent closure of a Peugeot car plant.
The subsidy rises, which are due to take effect at the end of the year, are particularly aimed at boosting sales of Renault's French-made "Zoe" electric car and Peugeot's diesel-electric hybrids.
Despite the presence of subsidies, electric and hybrid vehicles still made up only 0.2 percent and 0.8 percent respectively of new car registrations in the first quarter of this year.
Reuters reports that Toyota produces its hybrid Yaris in France, but the subsidies also benefit Japan's Mitsubishi, which makes Peugeot and Citroen's small electric cars.
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