France looks to push for EU-wide electric car subsidies

Speaking to the German Handelsblatt, French Industry Minister Marc Ferracci proposed that EU countries adopt a subsidy programme for EVs, modeled after what France already has in place. Paris allocates subsidies dependent on CO2 emissions during the production of vehicles and batteries, among other things, and thus excludes vehicles from China.

To further boost demand, Ferracci is in favour of a European initiative for the electrification of commercial fleets. The minister said that the details still needed to be discussed with all EU partners. “But the principle is that we – just like our trade competitors do – favour European cars when it comes to subsidies, be it for the purchase premium or for investments.”

Ferracci acknowledged that China-made electric cars are “both cheaper and more innovative,” adding that “we have a problem with competitiveness, demand and unfair Chinese trade practices.” At the same time, European manufacturers would have to make “very large investments” in electric mobility. “The future of our automotive industry depends on whether we find an answer to these colossal challenges.”

In the interview with the German newspaper, the French minister emphasised his country’s position in favour of additional EU tariffs on electric cars imported from China, which the German government had opposed. The EU Commission’s investigations had clearly shown that the state subsidises the entire electric mobility supply chain, Ferracci argues.

At the same time, he continues to uphold the goal of no longer allowing new combustion vehicles to be registered in the EU from 2035 onwards. “Such a step backwards would destabilise the strategy of European manufacturers,” said Ferracci. However, France wants to push back mandatory EU-wide fleet CO2 reduction targets that will apply from January 2025. It has asked the EU Commission not to apply sanctions against manufacturers who fail to meet these targets – after all, demand for EVs has dwindled across all member states.

Last month, Ferracci also said that public orders and corporate fleets would have to play a key role in boosting demand for electric vehicles. “We have work to do on supporting demand for electric vehicles. There is the question of bonuses, penalties, but also that of corporate fleets and public orders,” he said, adding: “We will try to use all the levers at our disposal.”

handelsblatt.com (in German), lesechos.fr (in French), autoplus.fr (in French, boosting demand)