the bonus reform − and its reduction − should slow down sales

2023-12-25 16:45:06

The restrictions brought in 2024 to the ecological bonus introduce a new deal for sales of electric cars. Without the benefit of this aid, vehicles from Asia whose carbon footprint is considered too high due to their production and transport conditions will be the most penalized. More broadly, the reform of this aid system, the amount of which will increase from 5,000 euros to 4,000 euros in 2024, should slow down sales of electric vehicles.

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The reorientation of the bonus in 2024 to benefit models manufactured in Europe is bad news for three of the biggest sales which together represent 23.5% of registrations. The Spring, the cheapest electric model on the market (25,000 units in 2023), will see its price increase from 15,800 to 20,800 euros. The Tesla Model 3, another flagship model, will no longer be billed at 37,990, but 42,990 euros, while the price of the MG4, the spearhead of the Chinese brand MG, goes back to 29,990 euros. Its distribution should, according to the manufacturer, decline by 30% next year.

MG (SAIC group), which has sold 31,000 cars in France over the last eleven months, does not intend to cut its prices. Excluding bonuses, the MG4 remains more than 6,000 euros cheaper than Renault’s Megane E-Tech, the price of which might nevertheless fall to below that of the new electric Scénic. The Chinese manufacturer intends to compensate for the shortfall through sales of the new ZS and the next MG3, a hybrid competing with the Renault Clio.

Promotional operations

The model most popular with individuals, the Spring is counting on its restyling scheduled for spring 2024 to limit the damage, while the electric version of the Sandero is not expected before 2027-2028. For its part, Tesla is not showing warning signs of a price war to maintain the level of sales of the Model 3 which has just been restyled. The American brand is mainly focusing on the Model Y, an SUV which is at the top of global sales of electric cars and benefits from the location of its production in Germany, near Berlin, to continue to benefit from the government bonus.

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The brands which will be deprived of bonuses have, in recent months, anticipated this change by launching promotional operations in order to make their customers aware of the benefit of placing an order before the end of 2023. A windfall effect which has in partly boosted the registrations of electric vehicles. In November, these represented 20% of the total market.

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