France helps auto sector with 8b euro support
A French government 8 billion euros package to help the auto industry recover from the COVID-19 pandemic includes increased incentives for new EVS and a scrapping scheme boost to get rid of polluting older vehicles.
President Emmanuel Macron says the government wants France to be the European leader in EVs by getting auto manufacturers to repatriate production from abroad and develop new models in France.
“We need a motivational goal: Make France Europe’s top producer of clean vehicles by bringing output to more than 1 million electric and hybrid cars per year over the next five years,” Macron says, Automotive News Europe reports.
France will increase the state bonus for private consumers buying EVs costing up to 45,000 euros to 7000 euros (up 1000 euros), while business customers can get a 5000-euro bonus.
A 2000 euro bonus is offered for plug-in hybrid electric vehicles (PHEVs) provided they have least 50km electric range and cost under 50,000 euros.
The improved EV bonus will be available from June 1 to December 31.
The trade-in premium to get rid of less efficient vehicles is doubling, with people buying a new or used latest-generation petrol or diesel model eligible for 3000 euros and those purchasing all-electric models able to get a 5000-euro bonus.
Some eligibility yardsticks are eased to allow 75% of French households to participate, according to Macron.
A customer ditching an older car for a new EV could be eligible for up to 12,000 euros under both schemes, Automotive News Europe says.
France will set aside more than 1.3 billion euros overall to boost demand and reduce dealers’ stocks.
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