France is set to exclude most electric cars produced in Asia from its electric vehicle purchase subsidy scheme starting next year. The French government will issue a decree that introduces new criteria for awarding the subsidy. The list of eligible vehicles will be published in mid-December.
The subsidy scheme currently pays up to €7,000 for lower-income individuals purchasing an electric vehicle and €5,000 for others. However, under the new criteria, buyers of Asian-made cars will have a hard time remaining eligible for the cash subsidy. The French Agency for the Ecological Transition will assess applications from carmakers and decide which models will still qualify for the subsidy. The assessment will be based on an “environmental score” that takes into account various factors, including materials, energy consumption, battery type, and the environmental impact of transporting the vehicle to Europe.
The move to exclude Asian electric cars from the subsidy scheme comes after French President Emmanuel Macron expressed the need to stop using French taxpayers’ money to subsidize car production outside the European Union.
French officials have assured that the new measure will comply with World Trade Organization rules. However, it remains to be seen how this exclusion of Asian electric cars will affect the market and the ongoing global efforts toward electric mobility.
– French government official
– French Agency for the Ecological Transition