France has unveiled a revised list of electric cars eligible for federal tax breaks, omitting Chinese-made electric vehicles (EVs) like Tesla’s Model 3 and the Dacia Spring. President Emmanuel Macron introduced new incentives encouraging consumers to choose French and European models. Among these is a €100 per month leasing program for EU-made electric cars, accompanied by a substantial rollout of financial incentives for first-time EV buyers.
Stricter Regulations Impact Chinese-Made EVs
The green bonus, previously a flat €5,000 incentive (or €7,000 for lower-income families), now considers the car’s life cycle and imposes limits on Chinese and foreign cars with high CO2 emissions during production. This impacts popular models like the Dacia Spring and MG 4, leading to a reported price increase for the Dacia Spring from €15,800 to €20,800 without the bonus.
Notable Exclusions and Inclusions
Federal tax incentives are no longer available for the Chinese-produced Tesla Model 3. However, the Model Y, assembled in Germany, remains eligible. Other exclusions from the cash-back bonus include BYD’s Atto 3 and Dolphin, while South Korea-assembled Kia Niro and Czech Republic-made Hyundai Kona are still eligible.
Promoting European-Made EVs
The initiative aims to sway French consumers to “buy from Europe” by offering greater tax breaks on vehicles from French and European automakers. The decision-making process involved the French environmental agency Ademe, resulting in a list of about 500 models. Despite exclusions, approximately 65% of EVs sold in France, including 24 Stellantis and 5 Renault models, remain eligible for incentives.
Future EV Production Goals for France
France sets an ambitious target to produce over a million electric vehicles by the end of 2027. The exclusion of Chinese-made EVs aligns with broader efforts to promote domestic and European electric car manufacturing while influencing consumer preferences through financial incentives. The move reflects evolving dynamics in the global electric vehicle market.