Just days ago, the French government announced social leasing for the rental of electric vehicles at €100 per month.
“This policy is aimed at working French citizens who need an electric car in peripheral areas,” Agnès Pannier-Runacher, Minister of Energy Transition, told the press.
Meanwhile, the Minister of Transportation, Clément Beaune, disclosed the implementation timeline of the measure.
“The €100 per month leasing, at most, will be launched starting this fall, and deliveries will commence in early 2024,” the minister stated.
Regarding the origin of the vehicles, Beaune maintains that they could come from other European countries, although the focus would be on France.
“To have my mid-range and accessible car, it’s necessary to produce in France and in Europe, and then implement social leasing,” comments Beaune.
He adds: “What we have are affordable units made in-house, meaning in France and also in Europe.”
Furthermore, the official addresses the “danger” posed by the importation of Chinese vehicles, which have been discouraged due to the withdrawal of ecological bonuses.
“When we import cars from China, it’s not only detrimental to the industry and our economy, but it’s also extremely harmful to the environment,” expresses Beaune.
He adds: “Therefore, we will establish ecological bonuses and social leasing as environmental criteria in all our support initiatives, which will also support our domestic and European production.”
The measure will be presented in the budget and aims to be “a significant initiative never before implemented in Europe.”
Which models will be included in the social leasing?
Initially, two vehicle models are expected to be part of the subsidized leasing scheme.
Firstly, there’s the Renault Twingo E-Tech, which is anticipated not to be in the manufacturing lineup in the coming year.
This compact car boasts a range of 190 km and a lithium-ion battery with a capacity of 22 kWh.
Its maximum speed is 135 km/h.
The second model covered by the initiative is the Citroën e-C3, set to be officially launched in 2024 and manufactured in Slovakia.
It features a maximum range of 320 km, a battery capacity of 29.2 kWh, and a top speed of 107 km/h.
While there’s no confirmed information, it is expected that other vehicles like the Renault 5 and the Peugeot e-208 will also be included in the leasing.
Used cars show discounts of over €3,000
In terms of sales, France ranks second regionally.
According to reports from used car buying and selling platforms, the price of second-hand electric vehicles dropped by nearly 6% in the second quarter of the year.
The truth is that following a widespread decline in “used” vehicles, the cost decreased by 11% since 2022.
For instance, the price of the Renault ZOE descended by 15%, as did that of the Toyota Prius and the Peugeot e-208.
These percentages equate to a reduction of over three thousand euros.
Will used cars manage to gain relevance in the electric vehicle market?
France offers €50,000 to convert trucks to electric
According to reports from the French Government, the retrofit plan covers 40% of the conversion costs for a company, up to a total of €50,000 per vehicle.
Additionally, €50,000 is available for the purchase or lease (for a minimum of two years) of a new electric and/or hydrogen-powered truck, bus, or coach.
The subsidy scheme, known as the “retrofit bonus,” was already in effect for light commercial vehicles, but it has now been expanded to trucks.
Furthermore, an interest-free loan plan has been announced for the purchase of small electric vans under €60,000.
Further details can be found on the website.