Designed primarily to eliminate the very old, higher-polluting vehicles from circulation, the premium the conversion is already a success. More than 30 % of the quota will have already been distributed since the entry into force on the 1st June in the framework of the support plan for the automobile. What to give a little hope to the Conseil national des professions de l'automobile (CNPA).
" of Between 60 000 and 65 000 premiums have been awarded at the June 25 ", said the NFPC, greeting a success, in a press release.
This premium case-under the condition that income subsidizes the purchase of cars (new or used) in exchange for the scrapping of an old car. Its amount reached 3, 000 euros for a car petrol or diesel and 5 000 euros for an electric.
also Read "Automotive : here's income the time of the bounty hunters"
The device was capped at 200,000 in premiums. More than a third has already been elapsed. The idea was to boost the market in the short term to sell off the inventory of vehicles and thus be able to restart the automobile production affected by the health crisis.
Towards a premium sustainable ?
The sticker affixed on the cars have benefited from the premium to the conversion © DR
The CNPA emphasises that the premium conversion have been to date, 18 % of sales in the month of June, at the rate of about 20,000 in bonuses each week.
" It is an undeniable success, which far exceeds that of the premium to the conversion to the "first generation" at the beginning of 2018. This last resulted in an average rate of 10 000 premiums a week before the object of increasingly severe restrictions in July 2019, " said the organization which represents 142 000 companies in the services to the automotive dealers.
The NFPC, which considers the sector as "very fragile and the market prospects are highly uncertain" is working with the government on the terms of the next premium to the conversion, which will take the result of the current system ". A more sustainable system, but that will probably have less incentive than the current operation at this time. It is, therefore, not delay to take a decision, if you enter in the field of application of the measure.
He considers " indispensable to maintain an aid to target social and ecological, in keeping with the current scope of eligible vehicles, while adjusting the amounts and targeting priority households ".Updated Date: 01 July 2020, 06:34