France has introduced a list of electric vehicles that are eligible for subsidies of up to 7,000 euros ($7,640) per car. This subsidy depends partly on their environmental impact and effectively excludes vehicles made in China.
“According to a statement from the finance minister, Bruno Le Maire, “We will no longer subsidize vehicles that emit too much CO2.” To be eligible for the bonus, automakers will be encouraged to decarbonize their production methods. “
From tomorrow France is offering a variable rebate based on household income on cars priced under 47,000 euros. The policy is an attempt to promote local production of zero-emission vehicles and their components. Also, this comes after an EU investigation into allegedly unfair subsidies to China’s booming EV industry.
The list of vehicles eligible to receive subsidies includes Tesla Inc’s Model Y made in Germany and premium vehicles from Mercedes-Benz Group AG and BMW AG. Cheaper China-made cars like Renault SA’s Dacia Spring and SAIC Motor Corp’s MG4 are not included in the list. And neither is BMW’s iX3 SUV in this list. Tesla’s Model 3 which is manufactured in China and the US is also not on the list.
Some cars will also be eligible for a government-sponsored leasing scheme, which offers affordable rentals of up to 150 euros (Rs 13 thousand) per month for low-income families. President Emmanuel Macron also said that France’s lowest-income families will be able to lease electric cars for 100 euros (9 thousand rupees) per month, without any down payment. Which fulfills his presidential campaign promise to make zero-emission cars more affordable.
“We will make more vehicles in France,” he said in a video posted Thursday on social media.”
Electric vehicles made in China have a large carbon footprint. This is due to the country’s dependence on coal and the logistics involved in transporting them to Europe.
France is confident that its new rules comply with WTO protectionism rules. Because they are justified to protect the environment. a government adviser said ahead of the publication of the list.
The EU investigation, which began in September, has sparked concerns of a potential tariff war. At a time when European leaders are trying to increase economic freedom without losing access to China’s huge market after the trade deficit widened.
According to the government website, the list of electric vehicles available for leasing includes the Peugeot e-2008, Fiat 500e, and Renault Megane E-Tech. But certain cars have been excluded that are eligible for the bonus.
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