Home AustraliaFrance opens third round of social leasing program for electric vehicles

France opens third round of social leasing program for electric vehicles

by OmarAli
France opens third round of social leasing program for electric vehicles

As announced in April, the French government has officially launched the third phase of its social leasing scheme for electric vehicles. The program, known as “social vehicle leasing,” primarily targets low-income commuters. To qualify, applicants must either drive more than 10 kilometers each day in a personal vehicle or drive more than 8,000 kilometers per year to work in their own vehicle.

Applicants must also have a taxable basic income of no more than €16,880. The selection criteria have been relaxed slightly compared to the second round of funding in autumn 2025, when the income threshold was set at €16,300 and participants had to travel at least 15 kilometers per day.

As with the first two rounds of funding – the original program launched in early 2024 and exhausted its allocation within six weeks – the French government is aiming to support the leasing of 50,000 battery electric vehicles on preferential terms. Monthly rental payments are limited to 200 euros, no advance payment or deposit required. The contracts are for three years and cover an annual mileage of 15,000 kilometers. The final monthly rate depends on the vehicle model. During the previous round of financing, rental prices ranged from 95 to 195 euros per month.

Several automakers have already announced their proposals for the latest round of funding. Citroën offers the ë-C3 from €94 per month, depending on the trim level chosen. Renault offers the electric Twingo from €130 per month under a social leasing scheme, and the Renault 5 from €139 per month, with prices varying depending on configuration.

Peugeot has set monthly rates from €149 for the E-208, E-2008 and E-308. Volkswagen also joined the program by offering a new ID. Polo, ID.3 Neo, ID.3 and ID.4. However, customers can only view detailed leasing terms after entering their French postal code and selecting a participating dealership.

Low rental rates are made possible thanks to government subsidies. The French government covers 29 percent of the car’s purchase price, up to a maximum of 6,500 euros per car. The subsidy can rise to €9,000 if the car and its battery are manufactured within the European Economic Area (EEA). An additional €500 bonus is available if the electric motor is also manufactured in the EEA.

As in previous funding rounds, France effectively excluded most Chinese-made electric vehicles from the program due to its eligibility criteria. Instead of limiting vehicles by country of origin, qualification depends on whether the model meets a maximum CO₂ emissions threshold, which takes into account emissions from production and transport. In practice, cars made in China are unlikely to achieve the required score.

gouv.fr (in French), europe-infos.fr

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