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France is working on a plan for cheap leasing of electric cars

France is working on a plan for cheap leasing of electric cars

France is preparing a plan to subsidize electric car leases as part of President Emmanuel Macron’s campaign pledge to make them more affordable, Bloomberg reports.

The plan will make electric cars available for 100 euros a month, Budget Minister Gabriel Attal said Sunday on LCI TV, noting that the cost is less than what many people spend on gasoline. The government is working on how quickly the measure can be implemented and the availability of vehicles, he said.

Macron promised a state-funded leasing program for low-income households to counter criticism that even with subsidies, electric vehicles are still out of reach for many.

The French government is offering subsidies of up to 6,000 euros for the purchase of electric vehicles costing less than 47,000 euros, with possible additional help under a “cash for retirement” scheme for old vehicles with an internal combustion engine. Electric vehicles accounted for 12% of new car sales in France in the first seven months of 2022.

“We know that for many French people they remain too expensive,” Attal said on Sunday.

The lease measure is set to benefit European automakers launching new electric models, including Renault SA, Volkswagen AG, Peugeot and Stellantis NV.

Source: Capital