Which French cars sell well in China? Regarding this question, I believe many people are unable to answer it immediately. After all, in the Chinese automobile market, French cars are already a player that seems to be "gradually drifting away". But if we change the subject of the question and turn it into "Which Chinese electric vehicles sell well in France?" I am afraid that even many insiders in the automobile industry cannot give the correct answer at once.
In November this year, three of the five best-selling electric cars in France actually came from China. In addition to the domestic Model 3 and MG 4, a Dacia electric car named "Spring" is also on the list.
What many people don't know is that this small electric vehicle built by Yijiet New Energy, a joint venture between the Renault-Nissan Alliance and Dongfeng Group, was named "The Most Worth Buying Model in Europe in 2022" by AUTOBEST in 2022. At the same time, this model was also rated as the most environmentally friendly car of the year by GreenNCAP.
More importantly, this car has achieved real hot sales in France, Renault’s hometown. In this year’s monthly rankings, Dacia Spring has maintained its top five positions. Even in some months, this car beat the Tesla Mdoel3/Y "two heroes" and became the best-selling car.
So the question is, why has this little-known electric car in China become the most popular electric car in France? What role does Renault, Dacia’s parent company, play in this?
More importantly, what impact will the recent subsidy investigation launched by the French government on Chinese electric vehicles have on this popular electric vehicle?
Why do French people love small cars?
A while ago, the author went to France for a week's inspection and learned in detail about the country's car consumption habits and scenes. During the exchange, the author found that compared to the Chinese people who prefer "big cars" like SUVs, the French people, who are known for their "love of romance", actually prefer small and medium-sized cars equipped with small-displacement engines. The reason is very "realistic".
To put it simply, small-displacement cars really save money. In addition to the well-known fuel tax, the French government has formulated detailed support policies for small-displacement vehicles. From another perspective, it can also be understood that the country has adopted a "discriminatory" policy against large-displacement fuel vehicles.
Currently, France’s taxes on fuel vehicles include vehicle registration tax (CarteGrise) and environmental tax (Malusécologique). The calculation of the former is based on a unit that can be literally translated as "fiscal horsepower" (chevauxfiscaux, hereinafter referred to as "CV"). It should be noted that this unit is calculated by each district council taking into account indicators such as local income levels, vehicle power and environmental impact.
If you can own a large-displacement off-road vehicle in France, you are definitely a wealthy family.
For example, in Provence-Alpes-Côte d'Azur, a region with higher per capita income and stricter environmental requirements, the tax rate per CV is 51.2 euros. In Corsica, which has a relatively backward economy and a small population, a CV is only 27 euros, a difference of nearly double.
The environmental protection tax is calculated based on the carbon emission quota per kilometer, which is very interesting. According to the "Taxation Guide for Chinese Residents Investing in France" written by the International Taxation Department of the State Administration of Taxation, starting from January 1, 2023, if the carbon dioxide emissions of a car are less than 123 grams/km, the environmental protection tax will be only 50 euros. But if the emission value exceeds 190 g/km, the tax will directly exceed 10,000 euros.
What’s even more frightening is that if you want to buy a real high-horsepower fuel vehicle in France, your emissions tax will reach up to 50,000 euros.For the French people, instead of being "taken advantage of" and giving real money to the government, it is better to "aggrieve" themselves and choose a small-displacement car.
In terms of road environment, French cities can only accommodate small cars. Compared with Germany, which was completely "beaten", France basically did not suffer the baptism of war during the two world wars. Most cities have maintained their original "antique" style, so the streets in urban areas are often very narrow. Even so, both sides of many streets are often reduced to parking spaces for local residents, which causes passing vehicles to "survive" in the gaps.
This street leads directly to France's "Chang'an Avenue" - the Champs Elysées.
In fact, even in the capital Paris, streets like the one pictured above can be found everywhere.There are very few streets like the Champs Elysées that can host tank parades. Under such road conditions, it is obviously more appropriate to choose a small car.
In the movie "The Da Vinci Code", the hero and heroine drove a classic Smart when escaping from the French police.
Finally, and most importantly, small cars are relatively cheap to repair. Due to the narrow streets and the large number of cars per capita, car driving can be said to be a part of daily driving for most French people. Especially in a city like Paris, a large number of motorcycles will drive "through gaps" in the congested traffic, and collisions and even broken reflectors often occur. Compared with the Chinese people who "treasure" their own vehicles more, the French people are quite casual about it.
In this regard, most car owners regard scratches as "normal discussions" by default, and automatically turn a blind eye to the "wounds" on the vehicle. They will not send the car to a repair shop or 4S shop for repair until the damage on the car accumulates to a certain extent, or when the car needs to be sold as good as possible. At this time, small-displacement cars with lower maintenance costs obviously have more advantages.
Cars with such scars should not be too common in France
This is why Dacia's Spring is so popular in France. First of all, in terms of size, this car is just over 3.7 meters long and less than 1.6 meters wide, which is enough to navigate the narrow French streets. The wheelbase with a length of nearly 2.5 meters can also seat 2 adults in the back row.
In terms of performance, this car has a WLTP mixed operating range of 230 kilometers. Under WLTP urban conditions, this car has a range of 305 kilometers, which is enough to meet most people's urban commuting needs for a week. Thanks to the battery pack with a capacity of just over 25kWh, this car can be charged with the help of charging piles transformed from common street lamps in Europe.
More importantly, this car can enjoy a new energy vehicle subsidy of 5,000 euros in France. Combined with the financial leasing plan, the daily cost of using this model is only 6 euros, which is 180 euros a month, including car insurance.
Of course, the price of such a car at 17,950 euros is indeed much higher than the domestic BYD Dolphin with similar configurations. But everyone should be aware that the minimum wage set by the French government is 1,383 euros. In other words, as long as you have a full-time job in France, you can afford to drive this car.
In comparison, BYD's cheapest model in the European market, the Dolphin, is priced at nearly 30,000 euros. Obviously, this price is a bit too high for the majority of French working-class people.
Therefore, this makes the author a little curious: How was Spring, such a cost-effective king, created?
In addition to the Chinese supply chain, what else has Renault figured out?
This year, going overseas has become the most important move for Chinese automobile companies. In the first half of this year, China officially became the world's largest automobile exporter. At the Munich Auto Show in September this year, Chinese automobile companies such as BYD, Avita and Xpeng demonstrated their products and technologies to local users, media and peers in Germany, the home base of European automobile companies.
But in comparison, Renault's layout in this regard came earlier. Six years ago in 2017, the Renault-Nissan Alliance established a joint venture with Dongfeng Motor to establish Easyjet New Energy Vehicle Company. The latter has also become an important carrier for Renault's layout of the global new energy vehicle industry with China as the center. After several years of research and development, the company launched the Dacia Spring in the second half of 2020, and received more than 40,000 orders during the pre-sale period.
Obviously, China’s supply chain plays an important role in Renault’s strategic layout of new energy vehicles. Su Weiming, chairman and CEO of Renault China, mentioned in a speech this year that he is promoting the company to use "China's industrial advantages + Renault Group's brand advantages and European channel advantages" to open up the European market. In the first half of this year, the company's export sales exceeded 50,000 vehicles.
Currently, Renault is strengthening cooperation with Chinese companies at the supply chain level. In July this year, Groupe Renault and Geely officially established a company focused on the global development and production of hybrid powertrains and fuel powertrains. It is worth noting that Saudi Aramco is evaluating investment in the company and will promote its research and development of synthetic fuel and hydrogen fuel technology in the future. wantYou know, Saudi Aramco is an oil company with the largest proven oil fields in the world, and every move it makes affects international oil prices.
Renault is also joining forces with Chinese companies in promoting Chinese supply chains to enter France to improve its localized production. In 2022, the company reached a cooperation with Minshi Group, which was born in Ningbo, Zhejiang, and established a joint venture to produce power battery packs for new energy vehicles.
Earlier in 2021, Renault also cooperated with China's Envision Dynamics to build a super battery factory near Renault ElectriCity's production bases in Douai, Maubeuge and Ruiz in France. According to the plan, the annual production capacity of this factory will reach 9GWh in 2024 and 24GWh by 2030. This will help Renault achieve localized production of key parts for new energy vehicles while greatly improving production efficiency.
Of course, in addition to cooperation with the Chinese supply chain, Renault's many years of operations and accumulation in France are the core reasons for the success of the Dacia Spring car.
Many of you may not realize that the importance and historical presence of the Renault car brand to the French country may exceed that of the Hongqi brand to our country.
On the one hand, the company plays a pivotal role in the development of the world's automotive industry. After being founded by Louis Renault in Boulogne-Billancourt in the suburbs of Paris in 1898, Renault invented a series of technologies including direct-speed transmission, all-aluminum engines, electric windows, cruise control and turbocharging technology, etc., and is one of France's national business cards.
More importantly, during World War I, Renault performed a series of righteous deeds that could be called "industrial salvation of the nation."For example, the company designed, developed and manufactured the FT17 tank, which was called the "totem" of World War I tanks. You know, this is the first tank with a rotating turret in human history, setting a standard for future tank development around the world.
General George S. Patton, a well-known American military strategist, commanded armored forces equipped with Renault tanks during World War I.
On the other hand, the company has established a complete sales and service system in France through many years of operations. While traveling through the French countryside, I found that I could pass by a Renault dealer or service store almost from time to time.The most interesting thing is that some dealers were responsible for selling horse-drawn carriages before the invention of the automobile, and they have a history of nearly 150 years.
A dealer with a history longer than that of a car company
Through long development and perfect layout, Renault has built a solid brand image and user mentality in the minds of French consumers. In the exchange with car owners, a Renault owner who immigrated to France from North Africa told the author that one of the reasons why he chose Renault was that the company's service outlets are not only spread across France, but also in Algeria and Morocco in North Africa. "Even when we drive back to our hometown, we are very sure if something goes wrong."
In contrast, Chinese car brands that have just entered Europe and started selling cars obviously still have a long way to go.
Write at the end:
Although Chinese new energy vehicles have achieved good sales in Europe, especially France, the impact of regional industrial policies is becoming the biggest variable affecting the future. On December 14, local time, France, one of the largest automobile markets in Europe, announced a revised white list of compliant electric vehicles under its subsidy policy. Compared to the past, only 65% of electric vehicles were eligible for subsidies.This time, it directly eliminated the three companies in the top five sales of electric vehicles in the country in November mentioned earlier.
It is reported that the French government has included a new reference dimension when defining the new subsidy list, covering the carbon emissions during the "production, assembly and transportation" of electric vehicles, the so-called "carbon footprint".
This standard is very detailed and covers the production of steel, aluminum and other materials used to manufacture or assemble cars, the production of batteries, the final assembly of the vehicle, and transportation emissions from the assembly point to the point of sale in France. According to the new regulations, an electric vehicle must score at least 60 points to be eligible for subsidies.
Obviously, the Chinese car he took during his visit to China shocked French President Macron enough.
This also means that the prospects for the Dacia Spring produced in Hubei, China, and the Model 3 and MG 4 produced in Shanghai are not good because they need to cross half the world.
However, in the author’s opinion, based on Renault’s previous layout, especially the strategy of introducing Chinese supply chain companies to France, it may help the company achieve localized production of electric vehicles in the short term, thereby continuing to sell electric vehicles that meet the country’s subsidy policy requirements.
After all, as a representative company of the French automobile industry, Renault has too many cards.