The French government had amended an insurance discount anomaly affecting the purchase of electric vehicles (EVs), following widespread criticism within the industry.
Manufacturers, dealers and associations involved with promoting "zero emission" had openly condemned the policy limiting rebates to 27% of the rental price.
Go deeper with GlobalData
Under the previous regulation, lower rental values entailed less generous discounts for drivers, a fact which several brands, including Renault, had lamented cost them several sales.
According to the association for the future of electric-mobile vehicles (AVEM), during the first half of 2014 sales fell around 10% to 43,000 units, with 1050 EVs registered in June.
The change means energy-efficient cars bought under lease options will be able to benefit from the entire discount amount normally available on interest rates.
As of 1 July, drivers buying EVs under a lease with option to purchase agreement will no longer be penalised.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataPublished in the Official Journal, the amended decree also applies to hybrid vehicles acquired under lease option agreements.
France’s ministers for the economy and the environment said in a joint statement: "The reference value for calculating auto insurance discounts will be provided by the transaction price of the vehicle, rather than the rental price value, a sum which is often lower than the buying price."
