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France has extended the original purchase subsidy and considers launching an EV rental subsidy program

France is preparing to introduce an electric car rental subsidy scheme to make this kind of vehicle affordable for French consumers as part of French President Emmanuel Macron's campaign promises.



On August 28, French Budget Minister said that the plan would make electric cars available for lease at 100 euros ($100) a month, well below what many consumers would spend on gasoline. The government is studying how to roll out the measure quickly and the number of electric cars that can be supplied. The leasing measure will benefit European automakers such as Renault, Volkswagen, and Stellantis, which are launching new electric models.

 

The French government is offering subsidies of up to 6,000 euros for the purchase of electric vehicles priced below 47,000 euros, with additional funding likely through a "cash-for-cash for combustion engine" program. In June, the government revealed plans to extend the subsidy policy for electric vehicle purchases until the end of the year. This subsidy, which was supposed to end on July 1, will now run until the end of 2022 and will keep the 6,000-euro subsidy for electric vehicles.

 

Electric cars are still very expensive for many French people, even with subsidies, many French people still cannot afford electric cars. In response, Macron promised a state-funded electric car rental scheme for low-income families.

 

From January to July this year, the market share of electric vehicles in France increased from 15.7% in the same period last year to 20.0%, of which the market share of pure electric vehicles increased from 7.7% to 12.1% year-on-year, which proves that the sales of pure electric vehicles in France have been strong in the past year. However, the shortage of new vehicles, declining purchasing power of consumers and uncertainty about the future have put greater pressure on deliveries and orders.


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