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France launches new €1,000 grant for electric cars with European-made batteries

Purchasers will automatically receive discount on final price

The government wants to support production of European electric vehicles
Published

A new scheme is set to launch to reward drivers in France who purchase electric vehicles assembled in Europe with a European battery with an extra bonus. 

From October 1, those who buy a vehicle eligible for the scheme will receive an extra €1,000 bonus, deducted from the price of the vehicle at the time of purchase.

This comes in addition to any other electric vehicle purchase bonuses including the bonus écologique, which can provide up to €4,200 in aid.

It means modest-income households will be able to receive up to €5,200 off of a new electric car through the two bonuses.

The €1,000 battery bonus is a flat-rate bonus and is not impacted by household income level or other criteria. 

It is paid for through energy credits (certificats d’économie d’énergie, CEE) from companies that failed to meet green targets, meaning it will not lead to additional government spending.

The Ministry for Ecological Transition announced the scheme on September 8 via a press release, available .

A list of eligible vehicles for the bonus will be published in the coming days on the ADEME (Agence de l'environnement et de la maîtrise de l'énergie) website. 

‘Support European production’

Several manufacturers are reportedly looking at opening up a European factory for electric car production, which could see the number of vehicles eligible increase over time.

“Faced with strong international competition, Europe must strengthen its production in line

with its strategic autonomy agenda. France defends this vision and reaffirms that

production is a prerequisite for sovereignty,” said the government. 

“The bonus… aims to encourage the relocation of the electric vehicle value chain and support industrial employment on our continent.

“Numerous battery manufacturing plants have been established in France and Europe. This bonus will support these factories as they ramp up production by encouraging manufacturers to source from European factories,” it added.