The Platform for the Automotive Industry (PFA) suggested on Wednesday April 19 that French public aid for the purchase of electric cars could be reserved for vehicles “made in Europe” to prevent them from benefiting mainly from imported models, especially from China. .
A response to American and Chinese protectionism
Last September, the Minister of Economy, Bruno Le Maire, had already mentioned this idea of directing the ecological bonus towards “vehicles produced in European territory or that strictly comply with the new environmental regulations”.
This proposal, in the midst of a debate on the European response to US and Chinese protectionism, could be part of the next sectoral contract being prepared with the government for the period 2023-2027.
“The possibility of a rebate reserved for vehicles made on European soil, like the IRA (Inflation Reduction Act) in the United States, is one of the lines of thought,” Marc Mortureux, director general of the PFA, told Reuters. aside. of a conference on the possibility of a “European Purchasing Act”.
“The objective is to give the European industry time to consolidate,” he added. In France, the ecological bonus for the purchase of an electric car currently represents 5,000 euros, regardless of the geographical origin of the vehicle, but with a maximum price of 47,000 euros, and up to 7,000 euros under resource conditions.
Lower prices at Tesla as a trigger?
At the beginning of the year, the American Tesla became eligible for this aid thanks to a reduction in its prices. The European decision to ban sales of combustion engine vehicles by 2035 raises fears that the continent does not have a sufficient alternative supply of electric vehicles to meet demand, particularly in the entry-level segment.
Europe has put numerous battery factories on its soil to reduce its dependence on Asia, but it may not be ready in time in the event of a commercial push for more affordable Chinese electric vehicles. The timetable for the implementation in France of the “social rental” promised by the President of the Republic Emmanuel Macron, an assistance system for low-income households that allows them to buy an electric car from 100 euros a month, is also behind schedule.
“The reason why this offer was not deployed as of July 2022 is precisely so as not to make it the gateway for Chinese vehicles in Europe,” said David Amiel, Renaissance deputy and member of the Finance Commission of the National Assembly, during the conference. “We want to be able to structure this offer and (have) in front of French and European constructions that can respond to it.”
Deep disagreements on this issue in Europe
The establishment of a European preference, however, arouses deep disagreements within Europe because it goes against the bloc’s tradition of free trade. The opinion of the players in the sector also depends on their own exposure to the American or Chinese markets. Ahead of the conference, PFA President Luc Chatel dismissed the Chinese threat, calling the EU’s goal of reducing EU greenhouse gas emissions by at least 55 “Fit for 55”. % by 2030, as “the largest abandonment of sovereignty in history”.
“A continent that invented the automobile, that perfectly masters all its technology from A to Z, with great competitiveness, unilaterally decides to abandon its technology and worse, opt for the technology that its neighboring competitor dominates,” he said.
To defend its industry, Europe can also restrict imports by setting specific standards, but the process takes time. It can also integrate processed products, including cars, into the EU’s border carbon tax mechanism, currently limited to raw materials, a move that is being considered but the details of which are still being worked out.
Source: BFM TV
