these cars may have no bonuses in 2023!

MG, Aiways, Nio, BYD, Lynk & Co, Great Wall Motors… all these brands may not be eligible for the electric car bonus in 2023, according to the Minister of the Economy.

Did the American decision to strongly restrict access to the federal bonus of 7,500 dollars for the purchase of a plug-in hybrid or an electric make Europeans react? We will never know if the policy applied here stems from a reaction to American protectionism, but it is clear that the schedule of announcements fits perfectly. At the end of August, the Biden administration signed the Inflation Reduction Act with a new bonus of 7500 dollars granted only to vehicles produced on American soil and which have a battery assembled in the land of Uncle Sam. Among other conditions. We were wondering right here when Europe was going to wake up… here is the beginning of an answer! A few weeks later, here we are at the period of preparation of the 2023 budget as part of the PLF (Finance Bill). The Minister of the Economy, Bruno le Maire, has just announced that the 2023 bonus could include a new condition which would exclude all Chinese cars.

Read also: Bonus for the purchase of electric cars: when will Europe wake up?

A bonus only for certain electric cars?

Teslas coming from China will not be eligible for the bonus, if the law was passed with an original condition
Teslas coming from China will not be eligible for the bonus, if the law was passed with an original condition©Tesla

In addition to being reduced by €1,000 (it will be a maximum of €5,000, an amount which should have been applied from this summer), the bonus could be subject to an unprecedented original condition of the vehicle. “It will not have escaped you that the Americans reserve their bonuses for models produced on American soil. I want to open this reflection… Shouldn’t we reserve the ecological bonus for models produced in France or Europe? We have to ask ourselves“, has just explained Bruno the Mayor. Better late than never, even if nothing says that such a reflection would have emerged in the minds of our political leaders if the United States had not provoked the ire of Europe with its protectionist measures.

The establishment of a condition of origin (Europe) for electric cars would obviously be a very bad plan for Chinese manufacturers. MG, which is launching its electric compact, benefits from a hyper-aggressive price which, coupled with the maximum bonus, makes it a formidable competitor of Europeans. But without a bonus, it will start at €30,000, rather than €25,000. It’s not the same story!

And then there is this plan to return General Motors to Europe. The American group would probably appreciate if France, one of the BEV’s main markets in terms of volumes, leaves the bonus in place for cars produced on the other side of the planet. If the Ministry of Economy decides otherwise, Chevrolet Equinox, MG4 Electric and other Dacia Spring could take a nice hit in the grille.

Published on 09/26/2022 Updated 09/27/2022

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