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Date: November 15, 2024
Inés Platini
By Inés Platini
European Union

France proposes an EU-wide eMobility subsidy: What are the ingredients for its success?

This approach aims not only to establish a unified framework of incentives for electric vehicles across the European Union but also to protect the local industry against Chinese dominance in the sector.
France Proposes an EU-wide Moves Plan: What are the Ingredients for its Success?

Although several European countries already have aid programmes to encourage electric mobility, the differences in their implementation, scope and objectives reflect the complexity of establishing a common system. 

According to Alberto Molina Aracil, Director of Future Mobility Learning at MSX International, a Moves Plan like Spain’s for the European Union has potential, but requires certain key “ingredients” to ensure its success.

What are they?

In an interview with Mobility Portal Europe, the expert highlights seven points as essential for the French proposal to succeed.

Unanimity among member states  

The adhesion of all EU countries, with a firm commitment to the rigorous implementation of the plan, is essential. 

“ With a lot of attention to possible rebellious countries, such as Hungary,” he notes. 

Complementarity with national plans  

According to the expert, it is crucial that the European plan does not replace local initiatives . 

In the case of Spain, for example, the Moves Plan would continue to be an important pillar.

“This would prevent certain countries from cancelling their own aid plans using the excuse of the existence of this European,” he says. 

Technological diversification  

Alberto Molina Aracil (MSX International).

Although electric vehicles are the main focus, an inclusive program for all types of cars is needed that reduces or works towards eliminating carbon emissions.

In this context, he mentions:

“This includes hybrids, plug-ins, hydrogen, optimised fuels and the opening to future technologies that are not yet commercialised, among others.”

Immediate application of the incentive  

This is one of the most advocated measures in Spain: immediate deduction at the time of purchase.

Inspired by the “Tesla Booster” model , the aid must be direct and reflected in the price at the time of purchasing the zero and low emission vehicle. 

This scheme would reduce bureaucratic barriers, one of the main criticisms of the current Moves Plan.

Specific criteria for incentives 

The specialist stresses that the amounts must be adjusted according to the type of car, its technology, percentage of emissions and retail price (RRP), with the approval of manufacturers (OEMs), dealers and distributors.

Protection of European industry  

Clearly and honestly exclude vehicles that have not been manufactured on European soil, regardless of the manufacturer’s origin,” says Molina Aracil.

This includes locally produced Chinese brand models, but excludes those imported from Asia or outside the European Union.

“If the vehicle is manufactured in Europe, then it will be subject to these subsidies,” he said. 

Expansion to commercial fleets and leasing  

This refers to including incentives for companies, large fleets and rental or leasing contracts, which could accelerate the transition towards sustainable vehicles in key sectors.

According to the expert, these would be the basic points for “getting the French proposal up and running” and submitting it for study by the European Commission.

“This would have a certain acceptance among the sector, manufacturers and, above all, users and clients ,” he added.

What is the context of the French proposal?

This does not arise in a vacuum. 

The country has this year adopted stricter criteria for its national aid, assessing emissions throughout the entire production chain and largely excluding vehicles manufactured outside Europe. 

This approach aims to curb the competitiveness of Chinese manufacturers, who offer electric models at significantly lower prices.

For example, the MG4 and the Tesla Model 3, two of the best – selling electric cars in Europe, would be excluded from French aid due to their Asian origin. 

According to Marc Ferracci, French Minister of Industry, these criteria seek not only to protect local industry, but also to promote sustainability throughout the entire value chain.

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