France Fights for Renaissance as an Auto Nation - Focuses on Electric Vehicles and Social Leasing

Although France is not spared from the sales crisis in the automotive industry, there are signs of confidence at the start of the Paris Motor Show (October 14-20), also because the auto show, whose continued existence had been in doubt, is attracting more exhibitors again. "We must persevere, even if the times are difficult," President Emmanuel Macron said during his tour of the exhibition. "Europe, as well as France, must provide support during this period and ensure stability." France relies on tools such as purchase premiums and social leasing for e-cars to boost sales. Does it work better than in Germany?

Sales figures: 17 percent e-cars

In September, sales figures for passenger cars fell by 11.1 percent compared to the previous year and for light commercial vehicles by 15.2 percent. The market share of e-cars in new registrations was 17 percent in the first nine months of the year, and when including hybrid models, 25 percent of new cars have electric drive. Over 50 percent of new registrations are models from Renault and Stellantis, which include the brands Peugeot and Citroën. The most successful German automaker remains Volkswagen with the T-Roc, Golf, and Polo models.

Purchase premiums reduced - and socially graded

The purchase premium for e-cars was reduced from 5,000 to 4,000 euros in February. For people with a taxable annual income of less than around 25,000 euros, a premium of 7,000 euros for e-cars was maintained. In addition, the number of eligible models was reduced based on the CO2 balance, with a preference for models manufactured in Europe.

The subsidies earmarked for the transition to more environmentally friendly cars, amounting to 1.5 billion euros annually, are not expected to be exceeded this year. Last year, 300 million euros more in subsidies were paid out than budgeted. There is currently concern about a further reduction in the purchase premium, as France needs to make massive savings due to its high debt.

Social leasing: First boom, then lull - due to lack of vehicles

Often cited in Germany as a role model for promoting the transition to electromobility, the French social leasing experienced a major boom at the beginning of the year and was initially halted due to the lack of available cars for this year. It involves state leasing of e-car models starting at 100 euros per month. The offer was aimed at people with low incomes who depend on a car for work and live at least 15 kilometers from their workplace. The requirement is that the car purchase price is under 47,000 euros and the weight is under 2.4 tons. At the start of the offer, the government initially expected 20,000 to 25,000 corresponding leasing contracts for 2024. In fact, there were 50,000 interested parties within a few weeks, who probably won't all get a chance. However, social leasing is expected to continue in 2025, it is said.