France on Wednesday published new eligibility rules for electric car incentives to exclude EVs made in China, even though carmakers in Europe do not have more affordable rival models on the French market.
The French government currently offers buyers a cash incentive of between 5,000 and 7,000 euros in cash for eligible models to get more electric cars on the road, at a total cost of 1 billion euros 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, a French finance ministry source said. The trend has helped spur a surge in imports and aThe scheme will be revamped from Dec. 15 to take into account the carbon emitted in a model's manufacturing process.
President Emmanuel Macron and government ministers have made little secret that they want to make sure French state cash is not benefiting Chinese carmakers.Under the new rules, car models will be scored against government-set thresholds for the amount of energy used to make their materials, in their assembly and transport to market, as well as what type of battery the vehicle has.
Because Chinese industry generally relies heavily on coal-generated electricity, the criteria are likely to put the bonus out of Chinese carmakers' reach. The government, which is to publish in December the names of models meeting the new standards, says that the criteria are compliant with WTO rules because exemptions are allowed for health and environmental reasons.
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