PARIS, May 3 (Reuters) - French government efforts to
slow an influx of Chinese-made electric vehicles are bearing
fruit, industry data show, highlighting one of the most
sensitive trade issues when China's president visits next week.
A surge in imports of Chinese electric cars into Europe
has triggered EU tariff threats, which are expected to be a bone
of contention when President Emmanuel Macron hosts his Chinese
counterpart for a state visit on Monday.
France did not wait for a European Union decision on
implementing tariffs, instead redesigning its cash bonus scheme
in December to exclude the purchase of models made in China,
which had rapidly gained market share.
In the months ahead of the move, the three most popular
Chinese-made cars sold in France - the Dacia Spring (Renault
), Tesla's Model 3 and SAIC's MG4
- accounted for 22% of the market, according to Reuters
calculations using data from the companies and industry body AAA
Data.
Their share then surged to 32% in December ahead of the new
eligibility rules that require vehicles to meet criteria
covering how much carbon is emitted during the manufacturing
process and transport to market, favouring vehicles made in
Europe.
The three models' share of the market has since steadily
declined to just 4% in April, a drop hailed by Finance Minister
Bruno Le Maire as a sign the more restrictive eligibility rules
are working.
"It's proof that when we defend our interests and the
environment, we get results for our industry, factories and
jobs," Le Maire said at the end of March during a visit to a
Renault factory.
The French government has been eager to give domestic
carmakers time to come out with their own EV models and catch up
with Chinese makers that moved early to build up huge production
capacity.
However experts said the change to measures would only offer
a temporary boost to domestic brands.
"I do not think that made-in-China will remain
this low because Chinese manufacturers have the means to adapt
with competitive prices, despite the absence of bonuses," said
Flavien Neuvy, economist and director of the Observatoire
Cetelem, a French think tank.