France’s third edition of its social leasing scheme for electric cars is struggling to reach its target of 50,000 subsidized vehicles. Nearly four months after the program began in mid-July, 39,000 electric cars had been ordered by the end of October.
Orders initially came in quickly, but the pace has slowed significantly in recent weeks. The first two editions met their objectives and provided vehicles to 100,000 low-income households. The latest program may therefore not reach its full capacity.
The scheme, first presented as a campaign promise by Emmanuel Macron in 2022, allows eligible households to lease a new electric car for less than €200 per month over three years, without an upfront payment. The state covers that initial contribution to help lower-income households switch to electric mobility.
However, the program has become less attractive as its terms have changed. The maximum subsidy, excluding exceptions, fell from €13,000 in 2024 to €7,000 in 2025 and €6,500 in 2026. Each reduction has increased the monthly payment required from beneficiaries.
The market for battery-powered vehicles has also changed since the scheme was introduced. According to Jean-Philippe Hermine, director of the Institut mobilités en transition, demand remains present, but the main constraint is the availability of suitable cars.
Sources: Le Monde Économie.