France will only support European electric cars, not those of Tesla or Chinese manufacturers

For some time, the French executive had been considering the possibility of adopting protectionist measures similar to those of the United States ' Inflation Reduction Act (IRA) . Now this idea has become a reality.

From 2024, subsidies for the purchase of an electric vehicle will be based on the carbon footprint of its production, which means that electric cars made in China or in countries outside Europe will be excluded.

In France , the financial aid granted for the purchase of an electric vehicle is 5,000 euros , provided that the maximum price of the vehicle does not exceed 47,000 euros and that its weight does not exceed 2,400 kg . President Emmanuel Macron has proposed to reform this ecological bonus by making it accessible only to vehicles with a low carbon footprint, manufactured in Europe. According to him, this measure aims to encourage batteries and electric vehicles produced in Europe, which have a favorable carbon footprint.

A measure that favors French brands

Peugeot e-2008 made in Vigo.

The precise criteria have not yet been disclosed, but it is highly likely that an electric car and its battery made in China will be excluded, given that more than 50% of the energy produced in China comes from coal. Although Germany also uses a lot of coal in its energy mix, most of its car factories have managed to reduce their carbon footprint through self-consumption.

However, one can also consider that the environmental impact of transporting a car from China to France could negate the benefits of a Chinese factory using renewable energy to manufacture its batteries and cars.

The Tesla Model 3 RWD sold in Europe comes from China.

In practice, the proposed measure will mainly benefit French brands and the Stellantis group (Opel and Fiat) , which are the main brands producing electric cars in Europe, particularly in France and Spain, at a cost of less than 47,000 euros.

Chinese brands will also be able to benefit if they start producing in Europe, as BYD plans . However, Tesla's entry-level models will not be eligible for the aid, as they are made in China.

The Dacia Spring , also made in China , will also not be eligible, but its already affordable price makes it less impacted by this measure. Therefore, many South Korean and Japanese models will not be eligible, but the Czech-made Hyundai Kona Electric will be one of the few eligible models.

The bill will be put to the vote on May 17 and will likely be approved due to the majority in parliament. This measure comes as 25% of electric cars sold on the Old Continent in 2022 were made in China.