EVs made in China and South Korea: Will they no longer be eligible for French government subsidies?

France to push European-made EVs with new subsidy requirements - Portal Movilidad: Noticias sobre vehículos eléctricos

EVs made in China and South Korea: Will they no longer be eligible for French government subsidies?

-France announces final EV subsidy proposal-

-Evaluation points reflected in subsidy payment criteria-

We will provide you with a summary of articles published in Joongang Ilbo.

French government:

On September 20th, the “Final EV Subsidy Draft” was announced.

Final EV subsidy proposal:

When producing and manufacturing main parts and materials for EVs.

Calculate the amount of carbon emissions generated and assign an evaluation score to it.

South Korea’s automobile industry is expected to take a hit.

(Graphics by Sunny Park)

France releases final draft:

France released the draft text on July 28th.

After compiling various opinions, the final draft was released on the same day.

Evaluate your carbon footprint:

Evaluate the carbon emissions (carbon footprint) of the entire EV production process.

The evaluation points will be reflected in the subsidy payment criteria.

S. Korea to proactively cope with France's new EV subsidy policy: ministry | Yonhap News Agency

EVs made in China and Korea:

The final proposal has a large aspect of “checking the proliferation of Chinese-made EVs.”

Of course, there is a high possibility that Korean-made EVs will also be excluded from subsidies.

French Environment and Energy Management Agency (ADEME)

Outline of the proposed reorganization:

They are given an “environmental score” that reflects the carbon emissions of the entire process, from production to transportation to France.

Eligibility for subsidies is evaluated based on environmental scores.

An event held alongside Hyundai's Georgia EV plant ground-breaking ceremony on Oct. 25, 2022 (File photo, Courtesy of Hyundai)

Korean EVs are at a disadvantage due to subsidies:

Korean-made EVs use a larger proportion of fossil fuel energy than European EVs.

In addition, “carbon emissions from long-distance transportation” will be reflected in the evaluation.

Carbon emission factors for the maritime transport sector:

It was pointed out that the carbon emission factor was set excessively in the draft.

However, (0.1) was retained in the final draft.

Hyundai market share:

Europe is Hyundai’s third largest market.

If subsidies are not provided, modern times will be hit hard.

Impact on Hyundai:

Hyundai sold 16,570 EVs in France last year. Recorded 5th share.

Of these, 10,048 were produced in South Korea and exported.

68.4% benefited from the subsidy.

 

Hyundai Motor Group's dedicated electric vehicles are displayed in Paris, in June, to promote Busan's World Expo bid. Courtesy of Hyundai Motor Group

Reflecting the opinion of the Korean government:

This time, “part of the South Korean government’s written opinion and working-level discussions” was reflected.

If South Korea objects to the calculation of sector-specific coefficients, the relevant company can raise an objection.

When an objection is raised, the French government will consider and make a decision within two months.

仏財務相、中国の反発「恐れるに当たらず」 欧州委のEV補助金調査めぐり(AFP=時事) - Yahoo!ニュース

If the French side refuses:

If the French government does not accept the Korean side’s objection to the reorganization plan.

EVs produced in South Korea will be excluded from subsidy support from January 1st next year.

https://s.japanese.joins.com/JArticle/309327?sectcode=320&servcode=300