France's revamped EV incentive scheme toughens market for Chinese-made cars

France's revamped rules on consumer cash incentives for electric car purchases favour vehicles made in France and Europe over models manufactured in China, a government list of eligible car types published on Thursday showed. Tesla's Model Y will be eligible but not its Model 3. President Emmanuel Macron's government wants to make French and European-made EVs more affordable for domestic consumers relative to cheaper vehicles produced in China.

France's revamped rules on consumer cash incentives for electric car purchases favour vehicles made in France and Europe over models manufactured in China, a government list of eligible car types published on Thursday showed. Some 65% of electric cars sold in France will be eligible for the state bonus scheme, including 24 models produced by Stellantis and five by Renault. Tesla's Model Y will be eligible but not its Model 3.

President Emmanuel Macron's government wants to make French and European-made EVs more affordable for domestic consumers relative to cheaper vehicles produced in China. The French government already offered buyers a cash incentive of between 5,000 and 7,000 euros to get more electric cars on the road, at a total cost of 1 billion euros ($1.1 billion) per year.

However, in the absence of cheap European-made EVs, a third of all incentives are going to consumers buying EVs made in China, French finance ministry officials say. The trend has helped spur a surge in imports and a growing competitive gap with domestic producers. New eligibility criteria include the carbon emitted in the manufacturing process for an EV. China's auto industry relies heavily on coal-generated electricity, meaning many Chinese-made EVs will henceforth not qualify.

The Ademe agency overseeing the process studied the eligibility of almost 500 EV models and their variants to include in the scheme. Dacia, the low-cost Renault brand, saw its Spring model that is imported from China excluded from the list, as was SAIC's MG4.

Tesla's Model 3 is made in China. The Model Y, which is larger and more expensive, is made mainly in Berlin.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)