Macron delivers social leasing for EVs at €100 monthly

French President Emmanuel Macron has launched his promised ‘social leasing’ system for electric cars at 100 euros monthly for those on the lowest incomes. In doing so, he is fulfilling an election campaign pledge that takes effect on January 1st.

It would involve at least 20 000 to 25 000 deliveries in 2024, but after that, the number should increase. De facto, only EV models made in France or Europe would be eligible for the social lease, as also the new eco-bonus system outcastes EVs made outside the Union.

The measure, which comes as part of the fight against global warming, will be reserved for half of the lowest-income families. These families have a tax reference income below 15 400 euros, with adults counting for one share and children for half.

Budget of 300 million euros

However, initially, the measure targets only the biggest km-eaters in that group, those who travel more than 8 000 km a year or live more than 15 km from their workplace. In the first instance, it would involve a minimum of 20 000 users, but Macron hopes that the number of beneficiaries should increase with French production, to be doubled by 2025.

The leasing will last for three years, regardless of a possible increase in income. In total, the subsidy envelope for this leasing for 2024 is estimated at around 300 million euros.

900 000 low-income families

A website has been created for the leasing system, mon-leasing-electrique.gouv.fr, where French people can check their eligibility. Actual reservations will be made through the rental companies’ websites starting January 1st.

Motorists will also be able to turn to used EVs less than three and a half years old, starting to arrive on the market. According to a study, some 900 000 low-income families could benefit from the measure by 2030.

Stellantis hopes to make a difference

In France, the models that offer the most measured prices are city cars manufactured in Europe but not in France, such as the new Czech-made Citroën ë-C3 by the French-Italian-American auto manufacturer Stellantis (54 euros per month, excluding insurance), the Italian Fiat 500 and 89 euros per month, or the Slovenian Renault Twingo, less than 100 euros.

Among the models manufactured in France, the Opel Mokka is priced at 119 euros and the Renault Mégane E-Tech for less than 150 euros. State aid for each vehicle at 100 euros per month will be 13 000 euros or, according to an advisor, almost double the ‘electric bonus‘.

Cars and vans account for around 15% of French greenhouse gas emissions. The measure meets the objective of reducing these emissions by 55% by 2030.

Last year, 1,5 million cars were sold in France, of which 346 000 were new plug-in EVs, including almost 330 000 passenger cars, or 21,5% of the market.

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