Chinese share of French EV market slumps after incentives curbed

admin admin | 05-04 16:30

The three models' share of the market has since steadily declined to just 4% in April, a drop hailed by Finance Minister Bruno Le Maire as a sign the more restrictive eligibility rules are working.
Sales of the three most popular Chinese-made electric vehicles in France have collapsed since the government made them ineligible for cash purchased incentives, industry data analysed by Reuters shows.

A surge in imports of Chinese electric cars into Europe has triggered EU tariff threats, which are expected to be a bone of contention when President Emmanuel Macron hosts his Chinese counterpart for a state visit on Monday.

France, however, did not wait for a European Union decision on implementing tariffs, instead redesigning its cash bonus scheme in December to exclude the purchase of models made in China, which have rapidly gained market share.

In the months ahead of the move, the three most popular Chinese-made cars sold in France - the Dacia Spring (Renault ), Tesla's Model 3 and SAIC's MG4 - accounted for 22% of the market, according to Reuters calculations using data from the companies and industry body AAA Data.

Their share then surged to 32% in December ahead of the new eligibility rules that require vehicles to meet criteria covering how much carbon is emitted during the manufacturing process and transport to market, favouring vehicles made in Europe.

The three models' share of the market has since steadily declined to just 4% in April, a drop hailed by Finance Minister Bruno Le Maire as a sign the more restrictive eligibility rules are working.

The French government has been eager to give domestic carmakers time to come out with their own EV models and catch up with Chinese makers that moved early to build up huge production capacity.

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.


ALSO READ

Ola Electric responds to ARAI notice, says prices of S1 X 2 kWh scooter unchanged

Ola Electric provided an invoice dated October 6, showing a INR 5,000 discount given to customers, a...

Hyundai Motor IPO’s off to a slow start

Around 35% of the total shares in the offering are reserved for retail investors, while QIBs and NII...

Under fire, Ola Electric taps EY India to get back on track

Close to a dozen executives from EY came on-board at Ola Electric a few weeks ago on deputation for ...

Tata Motors secures 5-star BNCAP safety ratings for Nexon, Curvv, and EV models in latest crash tests

Tata Curvv.EV BNCAP testTata Motors did it again! Tata Motors has once again secured 5 star rating i...

India needs to step up manufacturing to meet Viksit Bharat goal: Volvo Grp India MD

Volvo Group India Managing Director and President, Kamal Bali. The manufacturing sector is a weak li...

Dollar pullback to help Indian rupee, weak risk appetite to weigh

Investors are now nearly certain that the U.S. Federal Reserve will deliver a 25-basis-point rate cu...