Car News

New car sales have plummeted again, France extends car purchase subsidies for 6 months

The French government has extended subsidies for car purchases against the epidemic for 6 months to support the auto industry in fighting the new wave of epidemics. Because since the end of last month, France began to implement new quarantine measures and bans, resulting in new car orders dropped by 70% to 90%.

The French Minister of Economy, Industry and Ecological Transformation stated: “Considering the impact of the new wave of epidemics and quarantine measures on car sales, the current car purchase subsidies and trade-in subsidies will be extended to June 30, 2021. The popularity of energy vehicles.”

The subsidy plan will be implemented at the end of May, and the original plan will expire on December 31. According to this policy, the purchase of pure electric vehicles can receive a subsidy of 7000 euros, the subsidy for plug-in hybrid electric vehicles is 2000 euros, and the subsidized models have price restrictions. At the same time, consumers who trade in can receive a subsidy of up to 5,000 euros. As of the end of July, the program has benefited about 200,000 old cars scrapped.

The French government allocated 8 billion euros for car purchase subsidies and provided 5 billion euros in state-guaranteed loans to Renault. Renault said last month that it had spent about 3 billion euros.

In order to curb the second wave of the epidemic, France again began quarantine measures on October 30. According to the latest French epidemic prevention regulations, customers can only go to the dealership to pick up the car when booking a car by phone or online, and this round of blockade The period will last until December 1. Taking into account the complexity of car buying, this measure basically put an end to most ordinary car buyers. “We will usher in a difficult year-end.” The French automotive industry organization CCFA warned that the French market will be difficult for the rest of the year as the nationwide blockade and restrictions begin in November.

According to sources interviewed by Reuters, car companies are worried that the epidemic will lead to another suspension of production and hope to avoid it at all costs. Although the current car consumption is restricted, it can export to countries with less restrictions. The second wave of the epidemic crisis returns, and a total of 60,000 jobs in the French automobile industry are at risk.

According to the latest report from Agence France-Presse, the PSA Group factory in eastern France said that due to the expected decline in demand, the factory stopped weekend shifts. At present, the number of new car registrations in France has dropped by 27% from January to October, reaching 1.24 million vehicles. It is currently seen that the annual decline may continue to expand.

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