France says ‘non’ to EVs made in China

Today, France has revealed its list of electric vehicles now eligible for federal tax incentives of up to €7,000. As expected, EVs made in China – including Tesla’s Model 3 and the Dacia Spring, the cheapest EV on the market – didn’t make the cut.

French president, Emmanuel Macron, has already unveiled new incentives to sway buyers away from Chinese models toward French and European ones, including a new €100 per month leasing scheme for EU-made electric cars, with those details announced today. The French government also announced a big rollout of cash incentives for first-time EV buyers, as long as they bought cars made in the EU.

The green bonus, originally a €5,000-flat cash incentive applicable (€7,000 for lower-income families) to all EVs, has tightened its rules. For one, a third of those incentives were going to Chinese-made EVs, so the incentives now take into account the car’s production and life cycle, freezing out Chinese and foreign-made cars with heavy CO2 emissions in their manufacturing process. 

The Chinese-made Dacia Spring, which accounts for 1 in 10 electric cars sold in France, will now see its price jump from €15,800 to €20,800 sans bonus, according to Les Echos. Also banished from the list is the MG 4, a British-branded electric sedan owned by China’s SAIC Motor. Priced at €30,000 pre-bonus, the EV currently holds 61.4% of the French market in terms of registrations since the start of this year, Les Echos reported.

Tesla’s Model 3, which for Europe are exported from Tesla’s Shanghai factory, is also no longer eligible for tax incentives in France. However, the Model Y, the most popular EV in the world, made the list since its assembly takes place in Germany. 

Other big hitters include BYD’s Atto 3 and Dolphin, which are no longer eligible, but Kia’s Niro (assembled in South Korea) and Hyundai’s Kona (made in the Czech Republic) are still eligible for the cash-back bonus. 

The move is part of a push to encourage French consumers to “buy from Europe” with bigger tax incentives on cars from French and European-made automakers. Some 500 models were on the list, with French environmental agency Ademe overseeing the decision-making process. According to Reuters, some 65% of the EVs sold in France remained on the list, including 24 models by Stellantis and five from Renault.

France has committed to producing over 1 million EVs by the end of 2027.