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French Government Plans to Increase Subsidies for Electric Vehicles After Overwhelming Demand for ‘Social Leasing’ System

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 an overwhelming 90,000 requests for the “social leasing” system. This system, known as LOA, allows people to rent an electric car for less than 100 euros per month. It is reserved for the most modest French people and heavy rollers. However, in order for this to happen, French manufacturers must “accelerate the pace” of production, according to Minister of Industry and Energy Roland Lescure.

Lescure stated that there is great demand for electric vehicles, but not enough products made in France 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 “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 dominate the French automobile fleet.

Faced with strong demand, Christophe Béchu, the 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” to allow for production to catch up with the demand. French manufacturers are planning to launch several electric models in the coming months.

The “social leasing” is currently reserved for French people with an income less than 15,400 euros per year who drive more than 8 kilometers per day or live more than 15 kilometers from their workplace. The rental is planned for three years and can be renewed once. The State will finance each rental up to a maximum of 13 thousand euros.

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