Carmakers apply for French EV subsidies under more stringent rules

PARIS: Automakers will from today submit the specifications of their electric vehicles to French authorities in the hope they can continue to benefit from subsidies under new conditions that are likely to edge out many Chinese models.

Amid fierce competition in the electric vehicle (EV) sector, the environmental score of each model will be based on the whole production cycle, factoring in carbon emissions for the transportation of the cars and the material and energy sources used to build them.

The score, automatically calculated by a dedicated online platform, is likely to rule out most models built in Asia, even if they are some of the most widely sold electric cars in France, a government source said.

"If there are vehicles produced in Asia which are very light, which are relatively virtuous, perhaps they could remain eligible (for the subsidies), we think that there are at least a few of them, however it will clearly not be the majority," the source said last month.

Tesla's Model Y and Model 3, and the Dacia Spring are among the EV models most sold in France, and they are built in China, as is the increasingly popular MG4, built by China's SAIC group.

The government subsidy for electric cars stands at 5,000 euros (RM25,000) for most households, and 7,000 (RM35,104) for poorer ones.

Car producers should get a response around Dec 15 and will be allowed to appeal any negative decision.

Italy is weighing a similar scheme.