Automotive Industry

Carmakers apply for French EV subsidies under more stringent rules

The rear light of a Dacia Spring electric car is pictured during the Brand Manifesto Dacia event at Le Bourget near Paris, France, September 13, 2022. REUTERS/Gilles Guillaume/File Photo

Beginning on Tuesday, automobile manufacturers will begin submitting the technical specifications of their electric vehicles to the French authorities in the hope that they will be allowed to continue to receive subsidies under new restrictions expected to give many Chinese models an advantage.

In the electric vehicle (EV) industry, where competition is severe, the environmental score of each model will be based on the whole production cycle. This includes taking into account the carbon emissions caused by the transportation of the cars and the materials and energy sources used to construct the vehicles.

According to a source within the French government, the score, automatically generated by a dedicated web platform, is expected to rule out most models made in Asia, even though these models are some of the most commonly sold electric vehicles in France.

“If there are vehicles produced in Asia which are very light, which are relatively virtuous, perhaps they could remain eligible (for the subsidies), we think that there are at least a few of them, however it will clearly not be the majority,” a source told me earlier this month.

In France, some of the most popular electric vehicle types are Tesla’s Model Y and Model 3, as well as the Dacia Spring. All three of these vehicles are manufactured in China, as is the ever-more-popular MG4 produced in China by the SAIC company.

The average household will receive a 5,000 euro ($5,270) subsidy from the government for purchasing an electric vehicle, while those with lower incomes would receive 7,000 euros.

Around the 15th of December, automakers should receive a response, and they will have the opportunity to appeal any judgment that goes against them. A plan with the same goals is being considered in Italy.

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