France has made headlines by suspending its highly popular electric car leasing scheme just six weeks after its launch due to an unexpected surge in demand that far exceeded initial expectations. The scheme, aimed at assisting low-income households and reducing carbon emissions, garnered immense popularity, leading to the government’s decision to temporarily halt the program.
Launched in December with the intention of offering 25,000 European-built electric cars for lease at €100 (£85) per month, the program witnessed an overwhelming response, prompting authorities to double the number of vehicles available. However, the unexpected influx of applications, totaling over 90,000 by the end of January, prompted the French government to reassess the program’s sustainability.
The scheme, heralded as a success story and emblematic of French environmental policy, aimed to make electric vehicles more accessible to motorists deterred by their typically higher upfront costs compared to traditional petrol or diesel cars. The means-tested leasing program offered vehicles worth €47,000 or under at a monthly cost of €100-€150, catering to individuals meeting specific eligibility criteria.
Applicants had to meet various requirements, including being over 18, residing in France, living a minimum distance from their workplace, and driving a certain distance annually as part of their professional activities. Additionally, applicants needed to have a household taxable income below a specified threshold. The three-year leasing contract provided an option to renew and purchase the vehicle, with the government subsidizing each vehicle up to a maximum of €13,000.
Despite its early success, the program faced challenges due to limitations in the availability of electric vehicles manufactured in France. Industry and energy minister Roland Lescure highlighted the need for French carmakers to ramp up production to meet the surging demand. He emphasized the dual benefit of the program in providing affordable electric vehicles to low-income individuals while boosting domestic production.
Acknowledging the program’s unforeseen success, officials announced plans to recalibrate and relaunch the scheme in 2025. Christophe Béchu, the minister for ecological transition, affirmed the government’s commitment to expanding the offer to meet the growing demand. However, details regarding the revised program and potential modifications to eligibility criteria remain to be finalized.
The suspension of France’s electric car leasing program underscores the challenges and opportunities associated with transitioning to sustainable transportation solutions. As governments worldwide seek to incentivize the adoption of electric vehicles to combat climate change, the French experience serves as a case study in managing the complexities of demand and supply dynamics in the transition to cleaner mobility options.
