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Surge in Demand for Electric Vehicles: French Government Considering Boosting Subsidies as Manufacturers Rush to Speed Up Production

ByEditor

Feb 11, 2024
French Manufacturers Urged to “Accelerate” to Receive Increased State Subsidies for Social Leasing

The French government is considering increasing subsidies for electric vehicles after receiving over 90,000 requests for the “social leasing” system. This system allows individuals to lease an electric car for less than 100 euros per month. However, in order for this to happen, French manufacturers must speed up production, according to Minister of Industry and Energy Roland Lescure.

Lescure stated that there is a high demand for electric vehicles in France, but not enough cars are being produced domestically to meet that demand. He emphasized that only vehicles built in France or Europe are eligible for this subsidy. The government is currently considering financing up to 50,000 cars instead of the initial 25,000, but Lescure stated that this will be done at a pace ensuring that cars made in China do not become the majority of the French automobile fleet.

Faced with strong demand, Christophe Béchu, Minister of Ecological Transition, assured that the government was working with car manufacturers to increase the number of available vehicles. Lescure noted that the system may have to wait a little while production catches up with demand. French manufacturers are planning to launch several electric models in the coming months.

The “social leasing” system is currently reserved for French people with an income less than 15,400 euros per year who drive more than 8,000 km per year or live more than 15 km from their place of work. The rental is planned for three years and renewable once. The State will finance each rental up to a maximum of 13,

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