PARIS (Nov 28): France will sharply reduce subsidies for electric-car purchases in the coming days, with a new scale ranging from €2,000 (RM9,364) to €4,000 based on income, down from the previous range of €4,000 to €7,000, a government source said on Thursday.

The move is part of broader efforts to rein in public spending and plug a massive hole in the state budget. It adds to carmakers' headaches as they are already struggling with sluggish electric vehicle demand.

"The government remains firmly committed to the electrification of light vehicles ... but the budgetary context is extremely constrained," the government official told reporters.

The government also targets total public aid for vehicle electrification of around €1 billion  in 2025, down from slightly over €1.5 billion this year.

Roughly 70% of the new amount will go towards purchase bonuses, with the remainder supporting commercial vehicles and funding the so-called social leasing plan for low-income households.

Uploaded by Felyx Teoh