by French car manufacturers are submitting the specifications of their electric vehicles (EVs) to French authorities in order to qualify for subsidies under new, stricter conditions. These conditions are expected to exclude a significant number of Chinese models, increasing competition in the EV sector.
Under the new rules, the environmental score of each EV will be determined based on the entire production cycle, including carbon emissions from transportation and the materials and energy sources used to build the vehicles. An online platform will automatically calculate the score, making it unlikely for many Asian models to be eligible for subsidies in France, despite their popularity in the market.
Although some lightweight and environmentally-friendly Asian models may still be eligible for the subsidies, it is expected that the majority will not meet the new criteria. Notably, Tesla’s Model Y and Model 3, as well as the Dacia Spring, are among the most sold EV models in France, all of which are built in China. The ever-popular MG4, manufactured by China’s SAIC group, is also produced in China.
The government subsidy for electric cars currently stands at 5,000 euros ($5,270) for most households, and 7,000 euros for lower-income households.
Car manufacturers can expect a response regarding their subsidy eligibility by approximately December 15th, and they will have the option to appeal any negative decisions.
The stricter regulations aim to encourage the development and production of EVs that have a lower overall carbon footprint. By considering the entire production cycle, including transportation and materials, French authorities are working to ensure that only the most environmentally-friendly EVs receive subsidies. This shift will likely reshape the EV market in France and may impact the production and sales strategies of car manufacturers.
The introduction of stricter EV subsidy rules is part of the French government’s ongoing efforts to reduce carbon emissions and promote sustainable transportation options. By incentivizing the purchase and use of EVs, France aims to transition towards a greener and more environmentally-friendly automotive industry. While these new regulations may pose challenges for some car manufacturers, they also present an opportunity for innovation and the advancement of more sustainable technology.
Ultimately, the adjustments in the subsidy criteria will drive car manufacturers to prioritize sustainability in their EV production. As the market evolves, it is expected that manufacturers will adapt their strategies to meet the new regulations and align with the changing needs and preferences of consumers.
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- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
