On April 30th, the French National Assembly will review a bill related to the adoption of electric vehicles (EVs) by corporate car fleets.
As a result, representatives of the country’s electromobility organizations have signed an open letter addressed to Prime Minister Gabriel Attal, insisting that corporations play their part in electrifying their fleets to boost the second-hand market.
“It is imperative that companies accelerate their pace of electrification so that households that still need a car have access to affordable electric vehicles,” they state in the document.
They further add, “Otherwise, we will see a two-speed transition, leaving a large part of the population behind.”
The signing corporations are UFC-Que Choisir, the Climate Action Network, CFDT Metallurgy, Transport & Environment (T&E) France, Climate Group, Respire Association, and Secours Catholique-Caritas France.
Furthermore, It’s worth mentioning that a recent report by T&E indicates that two out of three corporations did not meet the requirement for acquiring or leasing EVs as their vehicles, and most of them did not report on it.
Contradictorily, it is families who are driving electromobility, with a rate that doubles that of firms – 22 per cent versus 11 per cent-, despite the latter representing nearly 60 per cent of registrations.
Furthermore, authorities argue that currently, electrification mainly depends on affluent households, excluding a large majority of inhabitants from the new market due to the rise in vehicle prices in recent years.
It is worth noting that, according to Eurostat data, the minimum wage for an average French citizen is 1,766.92 euros per month, amounting to 21,203.04 euros per year.
However, is that money sufficient for the purchase of a new electric car?
For example, the Citroën Ami, currently the most affordable electric vehicle option in Europe, can be obtained starting from 7,990 euros.
This small two-door model is ideal for city driving because it has a range of only 75 kilometers and a maximum speed of about 45 kilometers per hour.
To purchase a unit of this model, a person earning the minimum wage would need to save their entire salary for approximately 4.5 months.
Another “affordable” zero-emission car is the Dacia Spring, with a starting price of 18,920 euros, a little over twice the price of the previous model.
Unlike the Citroën Ami, this urban SUV has a range of up to 305 kilometers in the city, along with a capacity for four people and an 80 per cent battery recharge in less than an hour.
In this case, a French employee would need to set aside their salary for almost a year – without the possibility of covering other expenses.
Based on these figures, it can be determined that transitioning to sustainable mobility is not profitable for all French civilians, so encouraging the purchase of used EVs is more cost-effective.
In this regard, the letter states: “By encouraging the largest companies in the country to do their fair share in purchasing EVs, it will boost the second-hand market and thus allow middle-class and vulnerable households to invest in a vehicle that is less polluting and less expensive to use.”
Measures to encourage eMobility by the French Government
It is worth noting that the French government offers a wide range of subsidies.
Firstly, electric vehicles and plug-in hybrids enjoy a 50 per cent exemption from registration tax.
To further incentivize the use of low-emission vehicles, the government provides subsidies through the “ecological bonus“.
These aids can amount to 3,000 euros for EVs with CO2 emissions, plus an additional 7,000 euros for drivers with annual incomes below 14,000 euros.
Moreover, from 1,000 to 3,000 euros can be added for automobiles located in Low Emission Zones.
Moreover, companies also benefit from tax incentives.
According to an official bulletin from Social Security on December 8, 2022, the BIK evaluation has been extended for two years, until December 31, 2024, for firms providing electric cars and using charging stations.
This advantage is assessed by deducting 50 per cent of the electricity fees contracted by the entrepreneur to charge the vehicle, with a limit of 1,800 euros per year.
Other financial benefits include reduced VAT for the installation of charging stations in homes and buildings, as well as tax credits for the purchase and installation of these stations.
Local aid programs have also been implemented in municipalities such as the Métropole du Grand Paris and the Normandy region.
Various institutions, such as the Public Service Pro and the Ministry of Ecological and Solidarity Transition, are involved in implementing these incentives, aimed at promoting a transition to a more sustainable French mobility.
