“We will deploy an affordable offer of electric vehicles by setting up leasing mechanisms to support the most modest households”, promised the candidate Emmanuel Macron during his first presidential election campaign speech on March 17.
Devices that mainly benefit the wealthy
This device, first proposed by the socialist candidate Anne Hidalgo, would be added to a string of purchase aids which have exploded sales of electric cars. Reaching up to 11,000 euros with the scrapping bonus, excluding local aid, these subsidies have however benefited the richest and professionals more than the poorest households: the market is dominated by Teslas and Renault Zoé, much more expensive than their thermal equivalents.
Reduce CO2 emissions on the roads
The objective of the measure is clear: the government wants to reduce CO2 emissions on the roads and, at the same time, guarantee everyone mobility on four wheels right into the heart of metropolitan areas, where diesel engines will soon be banned. The most modest households would thus avoid old second-hand cars, and would be protected from the cost of gasoline.
The contours of this “social leasing” must however be specified. Emmanuel Macron’s campaign team explained in March that this device would be reserved for the socio-medical professions, young people and the general public under conditions of resources.
100,000 vehicles leased every year
This device would target at least 100,000 electric vehicles leased per year, for an estimated cost of 50 million euros for the first year of the device, or an apparently very low amount of 500 euros per vehicle.
The timetable for the measure is not yet known, but it should be inserted in an amending finance law, explained on Tuesday on France 5 the new Minister of Energy Transition Agnès Pannier-Runacher, in charge of the file. “It will take a sufficiently robust device so that the French can benefit from it immediately,” she underlined.
Manufacturers are already leasing vehicles
Manufacturers such as Renault, Hyundai or the Chinese MG have recently launched long-term rental offers that could fit with this measure. In particular if the first rent (the contribution) is guaranteed by the Caisse des dépôts “for couples who earn the minimum wage or a little more”, as Emmanuel Macron said at the end of April.
According to this formula, which is still uncommon in France among individuals, a manufacturer or rental company offers a car at an attractive monthly price and collects it to resell it after three or four years, adding penalties if it is over-kilometered or damaged.
Nissan offers, for example, its Leaf at 99 euros per month over three and a half years, for a maximum of 30,000 km. Dacia displays its Spring at 120 euros per month with 40,000 kilometers over 4 years, and a first rent of 7,700 euros reduced to zero if the maximum public subsidies are applicable. With its 300 kilometers of autonomy, the small electric car is already meeting with great success and the waiting lists are getting longer. On the side of Stellantis, Fiat displays its small 500 from 119 euros per month with 2,500 euros of contribution, and Peugeot its e-208 at 149 euros per month with 4,000 euros of contribution.
The production and terminals in question
However, production will have to follow in the factories, while the automotive industry is greatly slowed down by shortages. After years of decline, the cost of batteries is also likely to follow the rise in raw materials.
The government will also have to accelerate the deployment of electrical terminals. “It’s a major obstacle for city dwellers who don’t have a garage at their disposal,” emphasizes Fabien Neuvy, from the Cetelem Automotive Observatory. “Poor people have often been forced to leave large urban centers to find accommodation, and drive a lot. Autonomy, the fear of running out of fuel, are important issues”.
Furthermore, could this aid benefit cars manufactured in France? The Dacia Spring is produced in China, while French factories focus on mid-range electric vehicles.
letelegramme Fr Trans