France Extends Incentives for Electric Vehicles

All over the world, governments are taking action to stimulate the economy. Many countries are earmarking a portion of these stimulus funds specifically to help accelerate the transition to electric vehicles.

Peter Sigal has the latest from France over at Automotive News:

To help reach that aim, Macron said France would increase the state bonus for private consumers buying electric cars (that cost up to 45,000 euros) to 7,000 euros ($7,680)  from 6,000 euros.

Business customers can get a 5,000 euro ($5,490) bonus. There will be a 2,000 euro ($2,196) bonus for plug-in hybrid vehicles, as long as they can travel at least 50 km on battery power alone and cost no more than 50,000 euros ($54,900).

The more generous bonus for EVs will be available from June 1 until Dec. 31.

Automotive News

This should provide a nice boost to sales of Tesla cars and other electric vehicles in Q3 and Q4. France is also offering money to trade in your old polluting car:

Macron is also doubling the trade-in premium designed to get older, less-efficient models off the road. People who buy a new or used latest-generation gasoline or diesel model can get 3,000 euros ($3,294), while full-electric models are eligible for a 5,000-euro bonus.

Income requirements for the program are being relaxed so that 75 percent of French households are eligible, Macron said. 

The doubled bonuses will be available starting June 1 and will last until 200,000 cars are sold. A buyer turning in an older car for a new EV could be eligible for up to 12,000 euros ($13,178) under both programs.

Automotive News

12,000 euros on the purchase of a new EV? I’m not sure if Model 3 is eligible for the full incentive, but if it is you could get 12,000 euros off an EV that starts under 50,000 euros (including tax). That’s 25% off the cost of a new vehicle or more! With that kind of math, buying new starts to look like a better deal than buying used.

Renault will develop a 100-kilowatt-hour electric motor for Renault-Nissan alliance vehicles at its site in Cleon, France, rather than in Asia, Macron said. Under a new alliance plan announced this year, Renault will take the lead in EV development.

Automotive News

Wow, a 100 kWh electric motor? It must have a battery built in. Sounds like really advanced technology. /s

France also wants to boost production of EVs and hybrids:

“We need a motivational goal: Make France Europe’s top producer of clean vehicles by bringing output to more than 1 million electric and hybrid cars per year over the next five years,” Macron said at the news conference.

Automotive News

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