Electric car at 100 euros per month: for whom, when? Here’s what the government is planning

An electric car at 100 euros a month for the most modest French: this measure promised by the government is still unclear and could involve heavy subsidies. (©AFP/Archives/Patrick Meinhardt)

An electric car at 100 euros a month for the most modest French: this measure promised by the government is still unclear and could involve heavy subsidies.

“We will implement an affordable supply of electric vehicles (…) by establishing leasing mechanisms to support the most modest families,” promised candidate Macron during his first campaign speech on March 17.

Here is what the government is planning with this measure, which is intended to be ecological.

Among other aids

This device, first proposed by socialist candidate Anne Hidalgo, would be added to the a series of buying aids that have driven electric car sales soaring.

Reaching up to €11,000 with the scrapping bonus, excluding local aid, these subsidies nevertheless benefited the richest and professionals more than the poorest households: the market is dominated by Teslas and Renault Zoemuch more expensive than their thermal equivalents.

The purpose of the measure is clear: the government wants to reduce CO2 emissions on roads and, at the same time, ensure four-wheel mobility for everyoneis right in the heart of cities, where diesel engines will be banned soon. The more modest families would thus avoid old second-hand cars and would be protected from the cost of gasoline.

“You need a robust device”

The contours of this “social lease” must, however, be specified. Emmanuel Macron’s campaign team explained in March that this device would be reserved socio-medical professions, young people and the general public under resource conditions.

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He would at least aim 100,000 electric vehicles leased per yearfor an estimated cost of €50 million for the first year of the system, or an apparently very low figure of €500 per vehicle.

The timetable for the measure is not yet known, but it should be inserted in an amendment to the finance law, explained this Tuesday, May 24, France 5 the new Energy Transition Minister Agnès Pannier-Runacher, responsible for the process.

A sufficiently robust device will be needed so that the French can benefit immediately.

Agnes Pannier-RunacherMinister of Energy Transition

Manufacturers are already offering offers

Manufacturers such as Renault, Hyundai or China’s MG have recently launched long-term rental offers that may fit this measure. In particular if the first income (the contribution) is guaranteed by the Caisse des dépôts “for couples who earn the minimum wage or a little more”, as Emmanuel Macron said at the end of April.

According to this formula, still uncommon in France among private individuals, a manufacturer or rental company offers a car at an attractive monthly price and collects it to resell it after three or four years, adding penalties if it has too much mileage or is damaged. .

Nissan, for example, offers its Leaf at 99 euros a month for three and a half years, for a maximum of 30,000 km.

Dacia presents its spring at 120 euros per month with 40,000 kilometers in 4 years, and a first rent of 7700 euros reduced to zero if the maximum public subsidies apply. With its 300 kilometers of autonomy, the small electric car is already finding great success and the waiting lists are getting longer.

On the Stellantis side, Fiat displays its small 500 from 119 euros per month with 2,500 euros of contribution, and Peugeot its e-208 at 149 euros per month with 4,000 euros of contribution.

However, production will have to continue in factories, while the automotive industry is greatly slowed down by shortages. After years of decline, the cost of batteries is also expected to follow the increase in raw materials.

the border problem

The government will also have to accelerate implementation of electrical terminals. “It is a major obstacle for city residents who do not have a garage at their disposal”, emphasizes Fabien Neuvy, from the Cetelem Automotive Observatory.

Modest people were often forced to leave large urban centers to find accommodation and drive a lot. Autonomy, fear of running out of fuel, are significant issues.

Fabien NeuvyCetelem Automotive Observatory

Furthermore, could this aid benefit cars made in France? The Dacia Spring is produced in China, while French factories focus on mid-sized electric vehicles.

Source: © 2022 AFP

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