Renault Group is anticipating the loss of French electric vehicle (EV) incentives for the China-built Dacia Spring full-electric minicar. The Spring, produced in China by Renault Group’s partner JMEV, has achieved success with approximately 42,000 sales this year, making it the least expensive EV in Europe. However, changes in the bonus system by the French government are expected to impact the incentives for the Spring. While half of Spring sales are in France, where generous EV incentives are offered, the EU has opened an investigation into China’s support for EV manufacturing, creating concerns about lower-cost cars entering the European market.
As a response, the French government plans to take a car’s total carbon footprint into account when offering incentives, primarily targeting China where coal-fired power plants are common. A new version of the Spring with improved cost positioning is expected to be launched by the end of the first quarter of 2024.