Reunion EV advocates challenge plan to slash pollution tax on gas cars

Réunion’s electric vehicle association Electro’Ker has filed a formal submission with the Ministry of Overseas Territories, directly opposing a regional government request that would cut the ecological tax on combustion-engine cars by half.

The regional government, led by president Huguette Bello, asked the national government to reduce the malus écologique by 50 percent for five years across overseas territories. The measure targets higher-emission vehicles and is framed as relief for residents facing lower purchasing power. Electro’Ker’s counter-submission argues the proposal would slow the island’s shift to electric vehicles rather than help ordinary drivers.

Additional reference context is available at https://www.automobile-propre.com/articles/malus-ecologique-les-electromobilistes-reunionnais-sopposent-a-lavantage-reclame-par-la-region/.

The dispute turns on a basic question of how tax policy shapes purchasing behavior. Electric vehicles are already fully exempt from the malus. Electro’Ker’s position is straightforward: reducing the tax on new combustion models makes them more financially attractive to buyers who might otherwise choose electric. The regional government counters that an underdeveloped charging network and the need to gradually adapt the island’s electrical grid justify a slower transition.

That charging infrastructure argument is where Electro’Ker pushes back hardest. The association points out that 67 percent of primary residences in Réunion are single-family homes, which makes home charging practical for most households. The island’s circumference measures 220 kilometers, so most journeys are short. Real infrastructure gaps, the association argues, exist in apartment buildings, long-term parking facilities, and workplace charging, not in the broader public network.

On grid capacity, Electro’Ker calculates that the 41,000 to 58,000 electric vehicles projected by 2028 would account for only 4 to 5 percent of the island’s annual electricity consumption. Managing charging schedules to avoid peak-demand problems remains a genuine challenge, but EDF is already piloting such systems in Réunion. The regional development plan overseen by SIDELEC projects roughly 3,400 charging points by 2028, concentrated on public and tourist sites. Electro’Ker warns that suppressing electric vehicle demand could slow the very investment needed to build out that infrastructure.

Meanwhile, the most contentious issue is one of tax consistency. Since March 2025, electric vehicles exceeding 150 horsepower have been subject to octroi de mer, a tariff on goods imported into overseas departments. The rates scale with power output: 8 percent for vehicles between 151 and 250 horsepower, 14.5 percent up to 400 horsepower, and 24.5 percent beyond that. Electro’Ker calls it “paradoxical” that the regional government simultaneously taxes certain electric vehicles while seeking relief for combustion cars.

The Peugeot e-208 illustrates the problem concretely. The 136-horsepower version escapes the tariff entirely. The 156-horsepower variant carries an 8 percent octroi de mer charge, yet delivers greater driving range and, according to Electro’Ker’s data, consumes less energy. The association proposes restructuring the tax framework around actual consumption and carbon impact rather than engine power alone.

Electro’Ker also challenges the purchasing-power rationale on its own terms. The malus operates on a steeply progressive scale, starting at minimal amounts just above the triggering threshold but reaching 80,000 euros for the highest-emitting models. A 50 percent reduction would have limited effect on mid-range vehicles while delivering substantially larger savings to buyers of powerful, heavily taxed cars. The structure raises a direct question about which income groups would actually benefit most.

The regional government’s request aligns with longstanding demands from the Syndicat de l’importation et du commerce de La Réunion (SICR), the island’s import and commerce union. Electro’Ker notes that the union’s president also leads the company that imports BMW and Mini vehicles to Réunion. The association stops short of directly questioning his motives but argues that policymakers must account for commercial interests shaping the debate.

The Ministry of Overseas Territories now holds two competing submissions. Whether it treats the malus question as a purchasing-power measure or as a structural signal about the island’s electrification trajectory will determine which direction Réunion’s vehicle fleet moves over the next five years.