A new EV for €100 a month? France's green plan for low income families

France is planning to roll out a "social leasing" initiative that promises to make electric vehicles available for low-income households for as little as €100 ($109) a month.

The scheme is part of the country's efforts to tackle climate change. But, even before its launch, it has run into roadblocks.

These include a shortage of vehicles that would be covered by the scheme, while analysts also question how affordable the delayed initiative will really be.

"The advertised price starts at €100 a month," says Marie Cheron, vehicles policy manager for the French campaign group Transport & Environment. "The price may be higher depending on the models available or the income of the household. What are the terms and conditions? Do you have to pay insurance as well?" she asks.

Details of the scheme are expected to be announced this year, for rollout in 2024. But Cheron told CGTN that one of the main hurdles is that French carmakers are simply not producing enough vehicles that are small and cheap enough for the leasing model.

There are other factors which will make it much harder for foreign carmakers to qualify. MG Motor, owned by China's largest car manufacturer SAIC Motor, in July introduced its own leasing offer which allows customers to lease its MG4 electric car for €99 ($108) a month.

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The company has already leased more than 1,000 cars under the initiative. The offer is viable because of subsidies from the French government.

But from next year France is amending its subsidy scheme to support French and European car manufacturing – meaning that MG's model will no longer qualify.

"It was really a social engagement for us," says Clement Lefevre, Head of communications for MG Motor France. "We are really happy because we sold a lot of cars with this system. But unfortunately, next year, it won't be possible because of the government's choice to take away the bonus."

President Emmanuel Macron's election promise of a "social leasing" scheme is aimed at accelerating the use of electric vehicles, as part of the country's efforts to tackle climate change.

Although there are questions about its implementation, Cheron says it has potential to make a positive impact once the challenges are addressed.

Analysis by the European Federation for Transport and Environment forecasts that between 2024 and 2030, about 900,000 low-income households could benefit from low monthly leasing costs under the government scheme.

MG is still hopeful that it may eventually be able to take part in France's EV planned social leasing initiative. It's in discussions with the French government to try to get its subsidies reinstated.

The carmaker is also looking at setting up a plant in Europe – which could help its vehicles to qualify for the scheme eventually.

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