France is nearing the conclusion of the second round of its electric vehicle “social leasing” programme, after allocating all 50,000 subsidised vehicles made available under the scheme, the government said.
The initiative, aimed at helping low-income households lease electric cars at below-market rates, was first launched in early 2024 and reached its initial cap within six weeks. The government relaunched the programme in the summer of 2025, reopening applications at the end of September. According to the French Ministry of Economy, all vehicles under the second round have now been allocated, although automotive magazine L’Argus reported that a waiting list remains in place in case some contracts are not finalised.
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The pace of uptake slowed compared with the first round. While about 41,500 applications were submitted in the first four weeks of the relaunch, it took a further two and a half months to reach the full 50,000 vehicles. Combined with the first phase, the programme has now enabled 100,000 households to lease an electric vehicle.
Under the second round, monthly leasing rates ranged from €95 to €195, depending on the model, with no down payment required. These prices were supported by subsidies of up to €7,000 per vehicle, deducted directly from lease payments. In the initial 2024 round, subsidies reached as high as €13,000.
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“By enabling over 100,000 low-income households, particularly in rural areas, to access an electric vehicle at a price below market rates, we are making the transition to a low-carbon economy both economically viable and attractive,” said Monique Barbut. She added that the scheme showed how environmental policy, social objectives and industrial strategy could be aligned.
The government also said the programme indirectly supported domestic manufacturing. About 34% of vehicles ordered under social leasing were produced in France, according to official data. The most popular model was the Renault R5, with more than 11,500 orders. Around half of all orders were for vehicles from Stellantis brands, led by the Peugeot E-2008, followed by the Peugeot E-208, Citroën ë-C3 and ë-C3 Aircross, and the Fiat Grande Panda.
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“Social leasing is a concrete tool for reindustrialisation,” said Sébastien Martin, noting that directing demand toward vehicles built in France and Europe helps support jobs, skills and industrial investment.
Eligibility for the programme was restricted to households with at least one employed person and a taxable reference income below €16,300 per person. Participants also had to commute at least 15 kilometres to work by car or drive at least 8,000 kilometres per year for professional reasons, criteria that particularly targeted part-time workers and single parents.
The government has not said whether a third round of social leasing will be launched. Elsewhere in Europe, similar ideas are under discussion, though proposed schemes in other countries would offer smaller subsidies and may not guarantee leasing rates as low as those achieved under the French programme.
