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

Une voiture électrique à 100 euros par mois pour les Français les plus modestes: cette mesure promise par le gouvernement reste encore floue et pourrait impliquer de lourdes subventions.

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

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

“We will deploy an affordable range of electric vehicles (…) by setting up leasing mechanisms to support the most modest households,” candidate Macron promised during his first speech in the campaign 17.

Here’s what the government is planning with this measure to be green.

Among other aids

This facility, which was first proposed by Socialist candidate Anne Hidalgo, would be added a variety of shopping aids which led to a rocketing increase in electric car sales.

However, these subsidies, which amount to up to 11,000 euros with scrapping fees, without local aid, have benefited the richest and professionals more than the poorest households: the market is dominated by Tesla and Renault Zoemuch more expensive than their thermal equivalents.

The goal of the measure is clear: the government wants to reduce CO2 emissions on the roads at the same time guarantee the mobility of all four wheelsis right in the heart of cities where diesel engines will soon be banned. The most modest households would thus avoid old used cars and be protected from the cost of petrol.

“You need robust equipment”

However, the contours of this “social leasing” need to be clarified. Emmanuel Macron’s campaign team explained in March that the facility would be reserved socio-medical professions, young people and the general public under resource conditions.

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At least he would aim 100,000 electric cars for leasing per yearat an estimated cost of € 50 million for the first year of the scheme, or an apparently very low € 500 per vehicle.

The timetable for the measures is not yet known, but should be included in the amendment to the Finance Act, which is explained this Tuesday 24. France 5 the new Minister for Energy Transformation, Agnès Pannier-Runacher, in charge of the file.

It will want a robust enough device for the French to benefit from immediately.

Agnes Pannier-RunacherMinister for Energy Transformation

Manufacturers are already offering offers

Manufacturers such as Renault, Hyundai or China’s MG have recently launched long-term rental offers that could suit this measure. Especially if the first rent (contribution) guarantees Caisse des dépôts “For couples who earn the minimum wage or a little more,” Emmanuel Macron said in late April.

According to this formula, which is still unusual in France, a manufacturer or rental company offers a car at an attractive monthly price and collects it after three or four years to resell it, adding penalties if it is too driven or damaged.

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

Dacia shows its spring at 120 euros a month with 40,000 kilometers in 4 years and the first rent of 7,700 euros reduced to zero if the maximum public subsidies are applicable. With its 300 kilometers of autonomy, the small electric car is already meeting with great success and the waiting lists are being extended.

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

However, factory production will have to follow, while the automotive industry is severely hampered by shortages. After years of decline, battery costs are also likely to be followed by rising raw materials.

Border problem

The government will also have to step up location of electrical terminals. “It’s a big hurdle for city dwellers who don’t have a garage,” says Fabien Neuvy of the Cetelem Automotive Observatory.

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

Fabien NeuvyCetelem Automobile Observatory

In addition, could this aid benefit cars made in France? Dacia Spring is manufactured in China, while French factories focus on middle-class electric vehicles.

Source: © 2022 AFP

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