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Renault "likely" to lose domestic state subsidies for Chinese-made Dacia Spring on rule shake-up



French electric subsidy rule change, targeting models made in China, identifies first Western victim with the likes of Tesla likely to follow

According to Renault Group's CFO, Thierry Piétont, Dacia is "likely" to lose its French state-backed purchase subsidy with a points-based rule change – which will include logistics routes – coming into effect that will target mainly models that are manufactured in China and are sold in France.

State subsidies contribute to leasing rates for some BEV models starting at below €100 per month, which has had a significant positive effect on the all-electric Dacia Spring, which saw two in three of its West European new deliveries arrive in France during the opening half of 2023 according to the European Electric Car Study.

During the same period across the 18 market West European region, the model recorded 22,700 new BEV registrations and was the Group's number one pure electric model, surpassing its Megane-E model.

The Tesla Model 3, which is also manufactured in China and exported to Europe, will likely also be impacted alongside Chinese models from the likes of MG and BYD. Citroën's European manufactured all-electric ë-C3 which is about to launch in 2024 priced below €24,000, with a lower range, sub-€20,000 priced model to follow, is set to benefit.

Significantly, this could be a litmus test of what the EU's ongoing investigation may conclude and could take a similar course of...

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More in-depth reporting in the full study published each month. The study now also features an in-depth look at the Chinese OEMs as their European expansion slowly begins. Are Chinese OEMs really a threat to the established European OEMs and what does the outlook look like?


May also interest you: French OEMs most vulnerable to Chinese incursion? Click here for the story


*Western Europe 18 Markets: EU Member States prior to the 2004 enlargement plus EFTA markets Norway, Switzerland, Iceland, plus UK


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