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From Standard to Exception
For the past three years, electric and hydrogen vehicles enjoyed a complete exemption from the regional vehicle registration tax. However, in a move towards administrative decentralization, the Financial Law of 2025 has allowed regions the choice to continue or discontinue this exemption. It appears that all French regions, except Hauts-de-France, have opted out, choosing to maintain their commitment to sustainable mobility.
In other parts of the country, drivers will now need to check with their regional council to find out the new costs of registering their electric vehicles. At this point, the list of financial incentives for switching to electric vehicles is shrinking: the end of fiscal and social benefits related to charging at the workplace, changes to the ecological bonus for purchasing an EV, and the end of some free parking in cities…
This could further slow down the adoption of electric vehicles, especially as the market is already showing signs of slowing down. The government’s aim is to cut public spending and promote better fairness in the distribution of aid. But given the overall economic crisis, this approach might adversely affect electric vehicle sales. This is also a concern for businesses whose fleets play a significant role in making transportation greener. These companies might find their shift to less polluting vehicles hampered.
An Acknowledged Economic Leverage
For the Hauts-de-France region, this fiscal policy is more than a gesture towards motorists: it’s a cornerstone of their economic and ecological strategy. This decision is part of the Hauts-de-France’s rev3 strategy, which aims to balance economic development, energy transition, and innovation.
By maintaining the exemption, the region hopes to attract investors, support local employment (the region is one of the most affected by unemployment due to its industrial history), and foster innovation and energy transition. It’s worth noting that the cost of horsepower tax is already among the lowest in the country, further enhancing the region’s appeal to individuals and businesses, including vehicle rental companies.