France halts €100-a-month electric car leasing scheme after huge demand
The French government has suspended an electric car leasing scheme after only six weeks following a surge in demand that more than doubled the number of vehicles required.
Scheme suspended due to high demand
The French government has temporarily halted its electric car leasing scheme due to overwhelming demand. The initiative, which was launched in December, aimed to provide low-income households with affordable electric vehicles and reduce carbon emissions.
Originally, the scheme planned to offer 25,000 European-built electric cars for lease at €100 per month. However, the number of vehicles required more than doubled after receiving over 90,000 applications by the end of January.
The government has announced that the scheme will be relaunched next year to meet the high demand. According to an adviser to President Emmanuel Macron, the scheme is a success and reflects France's commitment to environmental policies.
Conditions and benefits of the leasing scheme
The electric car leasing scheme targeted applicants who hesitated to purchase an electric car due to their higher costs compared to petrol or diesel vehicles. The means-tested leasing scheme offered vehicles worth €47,000 or less at a monthly cost of €100-€150.
To be eligible, applicants had to be over 18, live in France, reside at least 15km away from their workplace, and drive more than 8,000km per year for professional purposes. Additionally, their household taxable income had to be less than €15,400 per person.
The leasing contract was for three years, with the option to renew and purchase the vehicle. All vehicles had to be manufactured in France or elsewhere in Europe. The government was providing subsidies of up to €13,000 per vehicle.
Challenges and future plans
Less than six weeks after its launch, the scheme surpassed its initial objective, leading to its suspension. The industry and energy minister, Roland Lescure, attributed this to a limited supply of electric vehicles made in France and urged carmakers to accelerate production.
The French government plans to publish details of the 2025 scheme at the end of this year. A spokesperson for the minister for ecological transition stated that a new wave of orders would be implemented in 2025 to increase the offer. However, it is still uncertain whether the conditions will be revised or remain the same.
The government aims to strike a balance between providing affordable electric vehicles to low-income households and promoting the production of French vehicles. They acknowledge the need for French manufacturers to enhance their production capacity to keep up with the growing demand.
