With its price reduction strategy, Tesla is gaining a large share of the French electric car market. It is thus ahead of traditional car manufacturers. To increase his sales, the American does not hesitate to take advantage of a measure launched by the French government: the ecological bonus.
In four months – from January to April 2023 – the American brand has lowered the prices of its two flagship models, by 11,000 euros for its entry-level Model 3, and 5,000 euros for its Model Y. The first electric car is displayed from 41,990 euros, while the second is marketed from 44,990 euros.
Buyers of these models have the opportunity to benefit from the ecological bonus, introduced in France last January. This allows you to receive aid of 5,000 euros for 100% electric vehicles under 47,000 euros, with a mass of less than 2.4 tonnes. But consumers have no obligation to buy a French car, which is Tesla’s business.
Indeed, between its price cuts and the ecological bonus, the brand quickly became essential in France. The first quarter of 2023 also represents a record for Tesla, with 440,808 cars manufactured and 422,875 delivered worldwide. A trend that is also confirmed in France, with more than 12,800 Tesla registered in France during the first quarter, an increase of 51.24% compared to the same period of the year 2022, according to data from AAA Data. cited by the Automotive Platform. The Model Y thus becomes the best-selling car in France over the first three months of 2023, ahead of the Dacia Spring and the Peugeot e208.
With such results, Tesla is beginning to overshadow French manufacturers Renault and Peugeot, whose electric vehicles are sold from 42,000 euros and 40,950 euros respectively. But for Carlos Tavares, Managing Director of Stellantis (Peugeot), this does not cause any concern, he said on April 27 on BFM Business: “Stellantis does not need to respond to Tesla because the price of our vehicles is much lower than that of Tesla. So for us it’s not a pressing question, it’s a question for Tesla which was [at price levels] very high compared to the rest of the market.
However, the Ministry of Economy and Finance could modify the conditions for granting the ecological bonus to prevent it from benefiting foreign brands. “Protecting our national manufacturers”, convincing the public that it is not “a gift to the rich”, these are “real issues”, confides to the Parisian a senior official of the General Directorate of Enterprises. To avoid this phenomenon, Norway has also recently implemented a “Tesla tax” to reduce tax benefits on the purchase of branded electric vehicles.
Since January 1, 2023, the country has thus reinstated its 25% VAT on cars that cost more than 500,000 crowns, or 43,000 euros. There is also a weight fee of 12.5 Norwegian kroner – around one euro – per kilogram above 500 kg. For a Tesla Model Y, around two tonnes, you have to add around 17,360 Norwegian crowns, or an additional 1,500 euros. This is enough to direct buyers towards lighter and/or less expensive vehicles.
