French car lobby makes plea for bonus for 'made in Europe' electric cars

PARIS: French car lobby Plateforme de la Filière Automobile (PFA) on Wednesday proposed that a state bonus for consumers buying electric cars be reserved for vehicles "made in Europe".

The proposal comes as Europe looks at ways to counter Chinese protectionism and US subsidies offered by the US Inflation Reduction Act.

The bonus could be part of an agreement for the sector that is due to be negotiated by the car industry and the French state for the 2023-2027 period.

"The possibility of a bonus earmarked for vehicles manufactured on European soil, similar to the IRA (Inflation Reduction Act) for the United States, is among the options we are looking at," Marc Mortureux, the head of PFA, said on the sideline of a conference on a possible "Buy European Act".

"The goal is to give the European industry time to consolidate," he added.

In France, the bonus for consumers buying an electric car can total up 5,000 euros (RM24,313), regardless of where the vehicle is manufactured. Earlier this year, electric cars made by US carmaker Tesla Inc became eligible for the bonus.

A European Union decision to ban the sale of new petrol and diesel cars from 2035 aimed at speeding up the switch to electric vehicles and combating climate change has raised fears among European car makers they may not be ready to produce enough electric cars to meet demand.

That would in turn benefit imported electric cars, notably from China.