French President Emmanuel Macron declared on Monday that the government will launch a new electric vehicle leasing scheme as early as November 2023. Under the new policy, customers will be able to lease eligible electric cars for only €100 per month.
French Transport Minister Clément Beaune stated on a public radio broadcast that the move is part of the government’s social ecology plan to lower EV costs in the country while strengthening ecological sovereignty.
France’s new EV leasing
As mentioned, the French automotive industry will soon roll out a €100/month leasing scheme for new EV buyers. However, it must be noted that the models must be European-made.
The President noted that the scheme would only be initially available for “a few tens of thousands of cars.” It will launch this coming November, potentially expanding in scope in the following years.
The government expects this new leasing scheme to aid low-income households in affording expensive EV models. It can also encourage conventional internal combustion engine-powered car owners to shift to more sustainable electric-based models.
“We want this scheme to give people access to electric cars made in Europe.”
President Emmanuel Macron
Competition with Chinese brands
The French Government’s move to contribute to making EU-made EV models more affordable is also crucial to compete with third-country rivals, especially China.
EURACTIV noted that Chinese electric automakers have claimed major market shares in the European EV industry for years. In 2022, they managed to snatch 8% of the market. Alarmingly, European Commission data suggests that Chinese brands’ market share can further surge to 15% by 2025.
Chinese brands’ EV prices significantly declined by about 50% from €67,000 in 2015 to €32,000 in 2022, Ptolemus Consulting Group indicated. Meanwhile, European-made model prices surged 17% from just below €49,000 in 2015 to more than €55,000 in 2022.
Electrification targets
France is among the numerous countries in the European Union to ban new sales of conventional ICE cars by 2035.
In addiion, the French electric vehicle industry now aims to record more than one million electric vehicle production by the end of Mr. Macron’s presidency in 2017.
The government will support this target by releasing a “a major inventory of French mining resources,” the President announced. He acknowledged that raw minerals such as lithium are critical for EV battery production.
See Also:
- France targets 1 million EV production in the country by 2027
- Startup Verkor secures €2B for developing its first battery factory in France
- Europe encounters challenges in its electrification efforts
- France is positive about securing significant investment from the Musk-led EV giant
- Tesla CEO Elon Musk met with the French President as it seeks global expansion
France’s significant initiatives for promoting electric vehicles are all part of its wider strategy of reducing CO2 emissions by 55% this decade from the 1990 levels. Notably, the President also plans to convert its two remaining coal-burning plants into a biomass energy plant by 2027 to make the country’s electricity production more sustainable.
