Electrification of French Streets: How the LOA Leasing System is Boosting Demand for Electric Vehicles

French Manufacturers Urged to “Accelerate” to Receive Increased State Subsidies for Social Leasing

The French government is considering increasing the number of electric vehicles available to the public through a social leasing system. The system, known as LOA, allows people to get an electric car for less than 100 euros per month and is reserved for low-income and heavy-duty drivers. However, in order to make this possible, French manufacturers must accelerate their production pace, according to Industry and Energy Minister Roland Lescure.

Lescure highlighted the high demand for electric vehicles in France but emphasized that not enough products are currently being produced domestically to meet that demand. He also noted that only vehicles built in France or Europe are eligible for this subsidy. The government is currently considering financing up to 50,000 cars instead of the initial 25,000, but Lescure stated that this will be done at a pace that ensures Chinese-made vehicles do not dominate the French automobile fleet.

Christophe Béchu, the Minister of Ecological Transition, assured that the government is working with car manufacturers to increase the number of available vehicles. However, due to strong demand, Lescure noted that the social leasing system may have to wait a little while production catches up. French manufacturers are planning to launch several electric models in the coming months.

The social leasing system is currently reserved for French people with an income less than 15,400 euros per year who drive more than 8,000 km per year or live more than 15 km from their place of work. The rental is planned for three years and can be renewed once. The State will finance each rental up to a maximum of 13,000 euros.

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