“Social leasing”: Stellantis wins 70% of orders for low-cost electric cars, Renault – 20%

Stellantis wins. The French manufacturer (Peugeot, Citroën, Opel, etc.) reported on Thursday that it has won 70% of the “social leasing” contracts awarded by the government to facilitate access to electric mobility, while Renault represents 10,000 orders out of 50,000 in general.

On Tuesday, the state decided to end the 2024 version of the system, which allows poorer people to access an electric car for 100 euros a month, after “exceeding” its original targets in six weeks, according to the Elysee Palace. But the operation will be resumed at the end of 2024 by 2025, the Elysee Palace emphasized.

“Social leasing was an excellent initiative to protect the freedom of movement of the most restricted households,” explained Stellantis CEO Carlos Tavares, referring to “a market share of more than 70%,” according to “our estimates.” Renault has received “just over 10,000” orders, its boss Luca de Meo told Boursorama.

New electric car for the price of a two-wheeler

“Social Leasing”, launched in December 2023 by President Emmanuel Macron, offered lease-to-own (LOA) of less than €100 per month for urban electric vehicles and €150 per month for family cars (excluding insurance and maintenance), with no down payment . and for three years with the possibility of extension once. The measure was aimed at frugal French people who drive a lot and buy few new cars for budget reasons and therefore had to wait until more electric vehicles hit the used market to be equipped with them.

The proposal, which reduced the price of a new electric car to the price of a two-wheeler, immediately became a victim of its success. There is a “need for these subsidies” because there is no “natural market” for electric vehicles yet, Luca de Meo said. “To maintain support, a somewhat medium-term strategy will be required,” he detailed on BFM Business, calling for “above all to avoid” a market drop that is too sudden, reminiscent of the situation in Germany.

In Germany, after the sudden removal of the green bonus for individuals in December, sales of new electric vehicles accounted for only 10% of the market in January, compared with 18.4% in 2023. In the absence of government subsidies, Constantin Gall of EY Germany said in early February that he expected new registrations of electric vehicles to decline in the coming months because prices were still too high.