100 euros a month for an electric car, the French government's incentive for sustainable mobility

The Macron government has announced a plan to subsidize electric car leasing for low-income families.

• The Paris government is trying to make fully electric vehicles available to the population for 100 euros a month, French minister Gabriel Attal said.
• After the launch of the proposal, local politicians are evaluating the speed of implementation of the measure and the availability of electric vehicles and charging points throughout the country.
• This is one of the first government projects in the world to make electric cars more widespread and facilitate the transition to sustainable mobility.

Support the transition to electric cars to increase it dissemination and make them available even to low-income families.This is the French government's project which includes a state plan to encourage the leasing of electric vehicles to its citizens.According to the program designed by the president's government Emmanuel Macron, which should be made official shortly after ministers have already presented it on television, will be made available fully electric vehicles for 100 euros per month.The cost is lower than what many French people spend on petrol and will have the characteristics of a long-term leasing or rental.In this way, the Paris government hopes to make the simpler transition to sustainable mobility and fast.

From 2021 to 2025

The idea was initially proposed by Minister Pascal Canfin in 2021 and immediately shared with enthusiasm by President Macron.The latter and the ministers Canfin and Attal are even appeared on television to talk about the project during 2022.But, as the newspaper reports Le Monde, at the moment the government is still grappling with the details of the operation.French politicians are trying to translate promises into concrete actions and have reached out national banking institutions and car manufacturers to help them carry forward the project of electric cars for all.

The plan could be inserted into the finance law for 2024, so that “vehicle reservations will be possible from the end of 2023 for delivery next year,” a spokesperson said.The process will be gradual:“In 2024 it will probably be a few thousand vehicles, for a budget of between 20 and 30 million euros,” explained Minister Attal.The launch of social leasing for electric cars is scheduled for 2025.It is possible that different subscriptions will be implemented:a 100 euro plan will allow the leasing of a simple and no-frills electric vehicle, while other subscription possibilities could be included to obtain electric vehicles of greater range such as the Smart Hashtag One.

Electric cars in France

Currently, the French government offers subsidies of up to 6 thousand euros for the purchase of electric vehicles costing less than 47 thousand euros, with the possibility of further aid under the program for the collection of old vehicles with combustion engines.Electric vehicles have represented 12 percent of new car sales in France in the first seven months of 2022.In Italy, a recent state incentive allows you to receive a bonus of 7,500 euros if you scrap your used car to purchase a new electric vehicle, as long as the price does not exceed 35 thousand euros plus VAT.

The industry site Transport & Environment praised the novelty from France because it will also allow those with a lower income to switch to electric vehicles and support the transition to sustainable mobility necessary to reduce damage caused by climate changes.The site's experts compare the Macron government's initiative to the American Henry Ford's idea of ​​lowering the prices of petrol cars by encouraging their diffusion throughout the world in the first decades of the 1900s.A recent analysis conducted by T&E shows that between 2024 and 2030, approximately 900 thousand low-income families could benefit of monthly leasing costs between 70 and 200 euros, depending on the size of the chosen electric vehicle.Taking into account lower advertising and distribution costs for manufacturers, as well as lower costs for extras and benefits, the price of electric cars can be reduced by 20-30 percent.When the incentives are truly available, France will be able to set an example for the rest of Europe with a strategy for low-cost electric vehicles that can encourage the transition to sustainable mobility.