The French government is redefining its electric vehicle subsidy criteria following new regulations in order to curb the influx of cheap Chinese electric cars flooding Europe.
According to Nikkei Asia, the subsidies ranging from €5,000 – €7,000 (~$5,932 – $8,305) from the French government for electric vehicle buyers will undergo changes in the near future. The new decree stipulates that the provision of electric vehicle subsidies will only be valid for vehicles that meet the standards set by professional agencies and the French government.
Specifically, France will consider factors such as the CO2 emissions produced by the materials used in the production of electric vehicles, such as steel and aluminum, as well as the energy used in the assembly process, batteries, and finally the transportation process from the place of production to France. All of these criteria will be quantified and manufacturers must demonstrate an “environmental score” related to the conditions of car production, greater than or equal to 60 points.
These changes will primarily affect Chinese electric vehicle brands. An official from the Ministry of Economy stated, “A sedan produced in China emits more than 45% more CO2 compared to a similar model produced in Europe… Typically, batteries manufactured in China emit carbon emissions 1.7 times higher than those produced in France.”
Meanwhile, automobile factories in France use renewable energy sources and nuclear power, so they do not emit carbon during the production of electric vehicles. Thus, electric vehicles produced in France will have an advantage over imported electric vehicles when this new regulation is implemented.
France declares that the revised policy applies a “highly accurate scientific method” to determine environmental criteria. Small transportation vehicles must emit less than 9 tons of CO2 during production (including batteries and transportation), while larger vehicles must meet standards below 14.75 tons.
“The best-selling model in France is the Dacia Spring EV by Renault, which is produced in China, and models under the MG brand from the competitor SAIC Motor will not meet the current production criteria,” said Agnes Pannier-Runacher, French Minister of Energy Transition.
The Renault Dacia Spring EV is currently assembled in Hubei province, China. In the first 9 months of 2023, this brand has sold 40,000 Dacia Spring EVs, with half of the production volume being in France.
Luca de Meo, CEO of Renault, said, “There will be no issue if this model no longer benefits from government subsidies. We are in the process of completely renewing our methods and moving forward. We can also sell the Spring EV in other locations outside of France, such as in India.”
On the other hand, Tesla’s Model 3 electric vehicle produced in Shanghai, China, is also at risk of being excluded from the new French electric vehicle subsidy policy. And it’s not just electric vehicles produced in China, electric vehicles produced in other Asian countries may also be affected by changes in France’s electric vehicle subsidy policy. The list of eligible vehicles will be announced by France on Friday, December 15, 2023.
TT (Tuoitrethudo)
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