France’s state-backed electric vehicle leasing program is rapidly expanding clean transportation access for lower-income residents while simultaneously fortifying the domestic auto industry by prioritizing European-made models.
The initiative provides eligible participants with electric vehicle (EV) leasing rates starting from approximately $150 USD per month, complemented by state subsidies of up to $7,500 USD per vehicle. To qualify, applicants must demonstrate financial need and rely on a vehicle for their commute, particularly if they reside more than 15 kilometers (9 miles) from their workplace.
The program strategically favors models produced by European manufacturers, intentionally excluding most non-European EVs, especially those from China. This approach not only encourages the adoption of cleaner transport but also bolsters the European automotive industry amidst increasing global competition.
Since its relaunch at the end of September, the program has facilitated more than 41,500 leasing contracts. Notably, over 11,000 of these agreements were issued to residents in urban areas suffering from high levels of air pollution.
The program significantly boosted the French auto market in October. While overall new private car registrations saw a modest 2.9% increase compared to October of the previous year, EV models surged by 63%, climbing from 20,899 to 34,108 units. This propelled EVs to a record 24% market share in France, meaning one in four vehicles registered in October was electric.
Among individual models, the Renault 5 E-Tech led sales in October with 4,551 registrations, regaining its top position after being briefly surpassed by the Tesla Model Y in September. Other top-selling models largely consisted of European brands such as Peugeot, Renault, Citroën, Skoda, and BMW, underscoring the program’s success in driving demand for regional manufacturers.
According to the French Ministry of Ecological Transition, the program has generated substantial interest, with 50,000 vehicles allocated in its initial phase and an active waiting list for future applicants. The government has allocated approximately $396 million USD for the initiative this year.
Participants benefit from a combination of low monthly payments and substantial state assistance, making electric vehicles a viable option for families who might otherwise be unable to afford them. Similar to other leasing schemes, the French model includes an option to purchase the vehicle at the end of the contract period, encouraging long-term electric mobility adoption.
This social leasing initiative reflects a broader European effort to accelerate EV adoption, reduce transport-related emissions, and support regional automotive industries. Its success demonstrates the potential for well-structured public support to transition towards sustainable transport, particularly for those facing economic barriers.