France readies a low-cost lease of €100/month for EVs
To popularize the adoption of electric cars in the country, the French government is preparing an affordable leasing program at €100 per month as an alternative to tax credits on new emission-free cars. It must offset the high cost of EV adoption.
The Budget Minister of France Gabriel Attal acknowledges that his government is "quickly" trying to roll out a leasing program for electric cars at a bottom price. President Macron vowed to do so when re-elected. During a French television program, Attal pointed out how EVs are still out of reach for many and how state-sponsoring is a prerequisite to speed up the national energy transition.
Cheaper than fuel bill
Electric cars accounted for 12% of the French market during H1 2022. With low-income households sticking to their combustion-engined paid-off car, a brake for further EV uptake, the government wants to undercut that monthly cost. Attal said the €100 mark lies lower than what some people pay for their fuel each month.
The targeted leasing price of the sponsoring plan seems somewhat of a stunt, but in reality doesn't shoot far under those of smaller EVs currently on the market. A Dacia Spring, the cheapest EV around, can already be leased in France for €120. The Nissan Leaf €139 - just like the Fiat 500e. And a Renault Twingo costs €150 a month. EV purchases are subsidized up to €6,000 in France.
Obviously, the government won't be leasing German premium brands at this low price point. This incentive focuses on electric city cars with ranges between 150 and - more optimistically - 300 kilometers, primarily suited for urban commuting.
The strength of the French subsidized leasing scheme can't be underestimated and will be followed with interest by other countries.
Image Source: Renault