The French government is planning to change the legislation on electric cars coming from China in order to reduce their competitiveness in the European market and support local manufacturers. This change will make the procedure for obtaining the 5 euro (about $5.3) subsidy available for purchasing battery-powered vehicles more complicated.
Classification According to Energy Source
French authorities are considering a change that would require electric car buyers to be subject to a new classification system in order to receive this subsidy. This new system will take into account the source of energy used in production and could completely exclude Chinese-made cars from the subsidy program. This is because China still uses coal to generate electricity and therefore Chinese cars are considered a “less environmentally friendly” option.
Support from the State Budget
The French government clearly states that the aim of this new legislative change is to prevent 1 billion euros annually from going to China. This subsidy will apply to models priced below 25.000 euros. This may increase the difficulty for European manufacturers to compete in this price range.
Limited Options in Europe
For European manufacturers, this regulatory change may present limited options. Models such as the Citroen e-C3 produced in Slovakia and the revived Renault R5 are included in this price range. zamIt may take a moment. However, with these changes, local producers will be given more opportunities in the European market.
European Commission's Investigation
With these developments, the European Commission launched an investigation into the pricing of Chinese electric cars in Europe. Demand for electric cars from China has increased rapidly in the European market, prompting Chinese automakers to look for new ships to transport their vehicles.
Conclusion
The French government's plans to change legislation for electric cars coming from China aim to support local automakers and increase competition. However, it should be closely monitored what impact these changes will have on Chinese automobile manufacturers and what kind of a competitive environment they will create in the European market.
