The end of €100/month leasing
So this is the end. The government has decided to bring the first 2024 social leasing scheme to a premature end. The scheme gave low-income households access to an electric car for around €100 a month. A decree is expected to be published in the Journal Officiel. However, this does not mean that the scheme has come to an end, as the Elysée Palace has assured us that social leasing will resume at the end of 2024 for the year 2025.
The scheme was a victim of its own success just one month after its launch, exceeding its targets for this year. The figures speak for themselves: by the end of January, more than 90,000 people had applied for a social leasing electric car under the scheme. One month on, around half the applications have been approved (more than 50,000 orders), well in excess of the 20,000 to 25,000 electric vehicles that the government had set itself.
Is the budget the reason for the shutdown?
Social leasing is one of the key measures in Emmanuel Macron's election programme. It offers the most modest households earning a maximum income of €15,400 the chance to sign up to a social leasing contract. lease with purchase option (LOA) for €100/month for a electric city car type Peugeot e-208 and €150/month for a larger Electric SUV as the Renault Megane e-Tech. However, to be eligible, certain conditions must be met:
- drive more than 8,000 km a year or live more than 15 km from your place of work,
- maximum aid of €13,000 per car, via the ecological bonus (€7,000) and an additional premium of €6,000,
- minimum rental period of three years, renewable once.
Some flagship models were more successful than others. The Stellantis group, for example, took particular advantage of the offer by proposing Peugeot e-208 and Fiat 500ᵉbut also larger models such as the Jeep AvengerThis brings the total number of electric cars to 30,000 by the beginning of February. For its part, the manufacturer Renault offered its Twingo e-Tech and Zoé e-Tech at the end of their careers at knock-down prices, but also their electric vanthe Kangoo Van e-Tech.
This has had the effect of increasing its market share thanks to social leasing," says Fabrice Cambolive, the brand's director. As a reminder, only electric vehicles built in Europe are eligible for this bonus. But of the models supported, only the largest are produced in France, such as the Renault Mégane e-Tech or the Opel Mokka-e.
Initially, with no end date in sight, the budget got the better of social leasing. The bill for this year alone is €650 million, far too high a price to pay when you consider the €1.5 billion allocated to financing the environmental bonus and conversion premium. Validated orders will be honoured," assured Roland Lescure, France's Minister Delegate for Industry, on Sunday.
What next?
In announcing the end of the social leasing programme for 2024, the Elysée Palace expressed its satisfaction with the success of the initiative when it was launched. " Of the 100,000 vehicles that French people eligible for leasing are normally prepared to buy each year, 50,000 will be electric this time. This represents a significant success for French-style ecology, benefiting both household budgets and the environment. "said an adviser to the President on Monday. The government is also in the process of planning the next phase of electric leasing for 2025, envisaging an increase in the scale of the programme. Further details will be announced towards "the end of this year or early next year", confirmed Roland Lescure.
The sustainability of social leasing will be influenced in particular by the ability of manufacturers to step up their electricity production. " At present, demand is strong and French production of electric vehicles is still insufficient. This means that French manufacturers must either increase their production rate or commit to doing so. "said Roland Lescure on Sunday. "The advantage of this programme is twofold: it makes electric vehicles accessible to people who are not necessarily wealthy, at an affordable cost, while encouraging the production of French vehicles. Our aim is to succeed on both fronts", added the Minister.
Stellantis claims that it is currently impossible to produce an entry-level vehicle in France and has recently launched its new Citroën e-C3, manufactured in Slovenia and priced at €20,000. Renault also plans to launch its Renault 5 electricwhich will be produced in the north of France, but at a higher starting price of €25,000. Other manufacturers such as Volkswagen, Skoda, Nissan or Hyundai also took part in the 'social leasing' programme, although their offers were only launched in January. Volkswagen France said on Monday that it had received and accepted a large number of applications, but regretted that it had joined the programme after the French manufacturers.
