Why the electric car at €100 per month is starting modestly in France

by time news

2024-01-01 18:50:39

► What is the long-term social rental system?

This system, also called “social leasing”, allows you to benefit from an electric car by paying monthly rent, but without any initial payment because the State will pay for it… up to €13,000 per vehicle. The beneficiary will nevertheless have to pay for the insurance and at the end of this 3-year rental, he can either buy his car or take out a new rental.

The site mon-leasing-electrique.gouv.fr allows you to deposit, from this week of January 1, your reservation for a model, such as an electric Renault Twingo for €40 per month or a Peugeot e-208 for €99 per month. It will cost €54 per month to rent a Citroën e-C3 or €89 for a Fiat 500. Some manufacturers offer higher range models, which therefore rise to €149 monthly (Jeep Avenger from Stellantis) or €150 for the Renault e-Megane.

One of the government’s stated objectives is to democratize electric cars, which cost on average €13,500 more than their thermal equivalent according to the automobile platform, representative of the French automobile industry. Low-income households are in fact targeted as a priority: to benefit from the system, you must declare less than €15,400 of annual income per tax share – or €30,000 for a couple without children -, but also be a “heavy roller”, that is to say traveling more than 8,000 kilometers per year or living more than 15 kilometers from their place of work.

►How many people will benefit?

This year, the government will only retain 20 to 25,000 files, in order of registration of reservations… A restricted number, because the quantities of vehicles produced in France or in Europe remain low and only a part of them will be reserved to social leasing. However, the place of manufacture is also one of the conditions set by the system. It’s about not supporting vehicles made in China, because Chinese manufacturers have put the work in faster than us on small electric models and therefore have a more developed offer…

For 2025, the Élysée is banking on 50,000 beneficiaries of social leasing – twice as many as this year – in parallel with the growth of French and European production.

► Will that be enough to democratize electric cars?

No, because in reality, it is mainly the second-hand market that will widen access. However, in 2023, electric vehicles accounted for less than 2% of second-hand sales.

The boom in used electric vehicles relies heavily on public authorities, businesses and car rental companies, whose new vehicles sooner or later end up in private homes. However, according to the NGO Transport and Environment, all these structures are behind the objectives set by law to green their fleets.

There remains the new market for individualsbut there, sales are expected to slow down this year because the ecological purchasing assistance bonus has just been revised downwards. A decision intended to favor European models rather than those from Asia, but which slows down the deployment of electric…

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