French government announces support policies for the automotive industry

French media (.fr) reported on July 25th that the French government’s production minister, Montpellier, submitted to the Cabinet the government’s supportive policies for the automotive industry on that day. A spokesperson for the presidential office stated that President Hollande favors the plan and considers it to be an "overall coordination" plan.

The report said that the program added 120 million euros in fiscal expenditure to help re-industrialized SMEs to encourage employment; in addition, there are 50 million euros for "certain actions" in the automotive industry, and 5 million euros for Increase the national electricity supply.

It is reported that the core content of the plan is to increase insurance premiums for electric vehicles and hybrid vehicles, as well as insurance surcharges for fuel vehicles with high emissions.

The program stipulates that the insurance premiums for electric vehicles will be increased from the original 5,000 euros to 7,000 euros, and the insurance premiums for hybrid vehicles will be increased from the original 2,000 euros to 4,000 euros.

In addition, the insurance premiums for fuel vehicles with low exhaust gas emissions range from 100 Euros to 150 Euros depending on the exhaust emission standards of different types of vehicles.

At present, France provides a low-emission car with a CO2 emission of 91 to 105 grams per kilometer, a 100-euro insurance premium, and a EUR 400-euro insurance premium for vehicles with 61 to 90 grams of emissions.

The plan stipulates that the above-mentioned preferential subsidy provisions will be extended until the end of this year, and future regulations will be clarified in the 2013 fiscal act.

The plan also stipulates that from 2013 onwards, an insurance surcharge will be levied on vehicles with a high emission of exhaust gas, and the additional fiscal revenue will amount to approximately 490 million euros, which can basically offset the increased financial expenditures for providing insurance premiums to electric vehicles and hybrid vehicles. .

According to the report, the government hopes to support the automotive industry through the above-mentioned programs. At present, Renault has started production of electric vehicles, while the Peugeot Citroen Group has begun to produce hybrid vehicles.

The plan also stipulates that the government will set an example in the promotion of electric vehicles and hybrid vehicles, and 25% of government procurement vehicles must be electric vehicles or hybrid vehicles.

In addition, the government will also accelerate the construction of charging facilities for electric vehicles and hybrid vehicles.

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