Electric car at 100 euros a month: for whom, when? This is 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 not yet clear and could lead to large 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 not yet clear and could lead to large subsidies.

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

Here is what the government envisages with this measure, which aims to be environmentally friendly.

Among other aids

To this device, first proposed by the Socialist candidate Anne Hidalgo, would be added a series of purchase aids which have boosted electric car sales.

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

The aim of the measure is clear: the government wants to reduce CO2 emissions on the roads and, at the same time, ensure four-wheel mobility for everyones in the heart of the cities, where Diesel engines will soon be banned. More modest homes would thus avoid second-hand cars, and would be protected from the cost of gasoline.

“You need a robust device”

However, the outlines of this “social lease” need to 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 in resource conditions.

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At least I would point 100,000 electric vehicles for rent per yearfor an estimated cost of 50 million euros for the first year of the system, or a seemingly very low amount of 500 euros per vehicle.

The timing of the measure is not yet known, but it should be included in a law amending finances, he explained on Tuesday, May 24, France 5 the new Minister of Energy Transition Agnes Pannier-Runacher, in charge of the file.

A strong enough device will be needed for the French to benefit immediately.

Agnes Pannier-RunacherMinister of Energy Transition

Manufacturers are already offering deals

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

According to this formula, still uncommon in France among individuals, a manufacturer or rental company offers a car at an attractive monthly price and collects it for resale 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 shows its Spring at 120 euros per month with 40,000 kilometers in 4 years, and a first rent of 7,700 euros reduced to zero if the maximum of public subsidies is applied. With its 300 kilometers of range, the small electric car is already very successful and the waiting lists are getting longer.

Along with Stellantis, Fiat shows its small 500 from 119 euros per month with a contribution of 2500 euros, and Peugeot its e-208 at 149 euros per month with a contribution of 4000 euros.

However, production will have to continue in the factories, while the car industry is slowed down by the shortage. After years of decline, the cost of batteries is also likely to continue to rise in raw materials.

The border problem

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

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

Fabien NeuvyCetelem Automotive Observatory

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

Source: © 2022 AFP

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