The malus fee, or tax, will rise up to 50,000 euros ($59,000) by 2022.
France is Europe’s second-largest car market.
Decisions like this could become commonplace before long.
This is news, good and bad, depending on where you stand. France’s decision to increase its CO2 emissions-based levies from the current maximum of 20,000 euros up to 50,000 euros by 2022 may very affect premium car sales which, once again, can be a good or bad thing.
The changes have not yet been implemented however the draft budget law presented by the French government could certainly cause a downturn in sales of high performance and luxury cars. For example, the Porsche 718 Spyder could be faced with a 40,000 euros penalty as early as next year. Priced from 96,500 euros, the near 50% increase in price will certainly turn buyers off. In the Lamborghini Urus’ case, priced from about 225,000 euros, the penalty may not affect the buyer quite as much.
Bloomberg reports that other countries in the EU charge similar levies however the amounts are considerably lower. For example, the top rate in Belgium and Italy is of only 2,500 euros. France’s plans may put pressure on other EU countries in order to reach the European Union’s 2030 Climate Target Plan: reducing CO2 emissions by 55% from 1990 levels rather than the previously planned 40%.
Independently from this, California has already announced that they will ban sales of the internal combustion engine (without electrification) by 2035. These measures, although necessary for the environment, may affect some manufacturers’ bottom line.