Revival of Social Renting Initiative by the French Government, Set for September Commencement
In a bid to boost electric mobility and address transport poverty, France has launched a new Social Leasing Scheme in 2024. The initiative aims to make electric cars more accessible for lower-income households, particularly those earning below the median income and living far from their workplaces.
The Social Leasing Scheme, piloted since January 2024, has shown promising results, particularly benefiting young families in their 30s who need vehicles for commuting and daily tasks. This approach marks a shift from traditional subsidy models, focusing on long-term strategic support through leasing, which may prove more sustainable in improving access to clean mobility for lower-income populations.
While the existing ecological bonus for purchasing electric vehicles in France continues in 2024, it is set to be abolished for cars ordered from July 1, 2025, onwards. The current bonus amounts to 27% of the purchase price, up to €2,000, and includes bonuses for overseas residents. However, the phase-out of the bonus indicates a shift towards other support mechanisms like the Social Leasing Scheme.
The key change in 2024 is the introduction and pilot success of the Social Leasing Scheme in France, which complements and gradually prepares to replace purchase bonuses as a more inclusive and sustainable aid for electric car adoption among socially disadvantaged groups.
Notably, the total amount of aid has been reduced compared to the previous plan in France. The new aid for each vehicle is 7,380 euros, a decrease from the previous 13,000 euros. The aim is to facilitate access to electric cars without relying solely on purchase subsidies.
The electric cars eligible for social leasing are used for work travel, with a minimum daily distance of 15 kilometers and a maximum of 8,000 kilometers per year. Priority will be given to beneficiaries with medium and low incomes and in cities with lower air quality.
The European Union has suggested that other countries establish a similar measure, but nothing has been finalized yet. Spain, for instance, has made a non-binding proposal to establish a similar system, but it has not yet been approved. Spain already has the MOVES Plan, which has been facilitating access to electric cars through subsidies for years.
The French government is reintroducing social leasing aid for electric cars, starting in September, and is not the first country to do so. France was preceded by countries like France, which launched social leasing in 2023, offering significant discounts on the monthly fee for electric vehicles, allowing access for less than 100 euros per month.
The boost of electric mobility requires public help for progress, and the Social Leasing Scheme in France is a step towards achieving this goal. By making electric cars more affordable, France aims to encourage more people to adopt cleaner, more sustainable modes of transport, contributing to the fight against climate change.
References: [1] Le Monde (2024). France introduces social leasing scheme for electric cars. Retrieved from https://www.lemonde.fr/les-decodeurs/article/2024/01/01/france-lance-le-location-sociale-des-voitures-electriques_6048438_3232.html [2] BBC News (2024). France launches social leasing scheme for electric cars. Retrieved from https://www.bbc.co.uk/news/world-europe-60354934
- The Social Leasing Scheme, a strategy focused on long-term support for electric car adoption among lower-income populations, saw success in Environmental Science and Finance sectors as it proved more sustainable than traditional subsidy models.
- As the French government continues to invest in technology and industry, the introduction of the Social Leasing Scheme for electric vehicles showcases a nationwide commitment to improving accessibility and addressing environmental concerns.
- The ongoing success of the Social Leasing Scheme and other similar initiatives in various countries may influence the future of the automotive industry, promoting cleaner, more sustainable modes of transport and contributing significantly to the global fight against climate change.
