France Proposes EU-Wide Electric Car Incentives

France is advocating for a coordinated EU purchase bonus for electric vehicles, aiming to counteract competition from China. French Industry Minister Marc Ferracci highlighted issues with competitiveness, demand, and unfair Chinese trade practices. This follows France's own bonus initiative tied to CO2 emissions, which excludes many Chinese-made vehicles. Ferracci suggests this model could inspire an EU-wide policy.

Meanwhile, Germany scrapped its electric car bonus last year amid budget constraints, impacting sales and the auto industry. However, there is growing support for renewed incentives from political figures like Robert Habeck. Ferracci also emphasizes a unified approach to electrifying commercial fleets, proposing preferential treatment for European vehicles.

China’s ambassador to Germany, Deng Hongbo, cautioned against protectionism, noting the intertwined automotive industries of China and Europe. He advocates for collaborative solutions, opposing EU tariffs on Chinese vehicles. As the EU and China navigate these tensions, finding a balanced resolution remains crucial for all parties involved.