France is suspending a scheme to subsidise the leasing of EVs for less wealthy households after seeing twice the level of expected demand.
The scheme began at the start of January and allowed households with an income of less than €3,300 per month ($3,500) to lease an EV for €100 per month for urban models and €150 per month for family cars. Households had the option to purchase the vehicle at the end of the three year leasing contract.
To be eligible applicants were required to either drive 8,000km per year for their jobs or live more than 15km from their place of work.
Over 50,000 households have already taken advantage of the scheme, double the quota of 25,000 vehicles allocated for 2024.
“The state-subsidised system started on January 1, 2024 , before stopping on February 12, 2024 due to the planned quota of vehicles being reached,” says a statement from the French administration.
Announcing the scheme in December, President Emmanuel Macron said it was part of a wider strategy to boost the EV supply chain in France.
“Over the coming months and years we will produce more and more electric vehicles in France. We will produce more and more electric batteries in France. And the goal is that we help you buy electric vehicles produced here,” he said.
The scheme also included a €500 tax credit for households wishing to install home charging stations.
"What's great about this scheme [...] is that you are both giving people who are not necessarily well-off access to a cheap electric vehicle and producing more French vehicles,” he said.
The scheme will be restarted in 2025, the government says.
Tom is an experienced business writer, specialised in the energy transition
Tom is passionate about Electric Vehicles and how Tesla, BYD, Rivian, Lucid and others are transforming automotive
