France will relaunch its electric vehicle (EV) leasing programme for low-income households this September, after suspending the scheme earlier this year due to high demand. The government has allocated €370 million to support the lease of at least 50,000 vehicles, with applications set to open on 30 September.
The “leasing social” initiative, which first launched in January 2024, was originally designed to last a year. However, the programme was halted after only six weeks when its initial €650 million budget was depleted. That round subsidised around 50,000 EVs at rates starting from €50 per month. This time, the average subsidy is expected to be lower, with a cap of €7,000 per vehicle compared to €13,000 previously.
“This incentive has truly democratised the ecological transition by enabling low-income households and new target groups to access an electric vehicle,” the Ministry of Economy and Finance said.
Under the revised scheme, eligibility remains tied to income and reliance on a personal car for work-related activities. Individuals with an annual taxable reference income below €15,400 will qualify. At least 5,000 of the targeted vehicles are designated for applicants in areas with particularly poor air quality.
Although the subsidy amount per vehicle has been reduced, the programme still aims to keep leasing costs affordable. According to the Ministry, leasing companies are expected to “offer deals below €140 per month or even less,” while the maximum monthly payment permitted under the scheme will be €200.
The programme will now be financed through France’s energy-saving certificates (CEE) rather than the state budget. It complements the existing environmental bonus scheme, which provides incentives scaled by income and vehicle production emissions. The 2025 bonus budget of €700 million is intended to support 200,000 EV purchases, including €10 million earmarked for used EVs and retrofitted vehicles.
The Ministry has defended the lower incentives, citing market developments. “Thanks to economies of scale and progress in battery technology, EV costs have fallen and their share of total vehicle sales has increased, reducing the need for subsidies,” it stated in October 2024.
However, recent data from the European Automobile Manufacturers’ Association (ACEA) show that EV registrations in France declined by 7.1% between January and May 2025, a trend analysts suggest may be linked to the reduced incentives.
Source: economie.gouv.fr