French Government Halts Low-Income Electric Car Subsidy Program Due to Overwhelming Demand

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The French government announced on Monday that it will suspend a program aimed at subsidizing electric car leases for low-income earners for the remainder of the year due to overwhelming demand. The initiative, which began at the start of 2024, allowed individuals earning less than 15,400 euros annually to lease an electric vehicle for a monthly fee ranging from 100 to 150 euros.

Originally slated to launch earlier, the program was delayed until this year because French automakers were not prepared with a sufficient number of eligible vehicles. With an initial budget of 1.5 billion euros to provide 20,000 leases in 2024, the government now plans to increase this number to 50,000 to accommodate the high demand before resuming the program next year.

Additionally, the government is offering cash incentives of between 5,000 and 7,000 euros to encourage the purchase of electric vehicles, allocating a total of 1 billion euros annually for this purpose. These initiatives aim to stimulate demand for electric cars among individuals who may not otherwise be able to afford them.

Both programs have eligibility criteria, including limits on the carbon emissions generated during manufacturing and shipping, intended to prevent inexpensive Chinese-made vehicles from qualifying. The list of eligible models includes 24 produced by the Franco-Italian group Stellantis and five by the French automaker Renault. While Elon Musk’s Tesla Model Y is eligible, the Model 3 is not included in the program.