The year 2023 set a new record for the market of electrified vehicles (EV + PHEV) in France, with a 26 percent market share. This bodes well for the sector looking ahead to the future.
Last year, EVs accounted for over 17 percent of automotive sales for the first time. This represents a 47 percent increase in performance compared to these types of cars in the year 2022.
Meanwhile, PHEVs captured a nine percent of the annual market share, and they experienced an 18% year-on-year growth.
Looking ahead, the figures are very encouraging for the sector.
Considering the sustained and exponential growth seen in recent years, everything indicates that the future will bring an even faster rise in supply and demand.
This is indicated by a study conducted by Statista Market Insight.
By 2025, the sale of electric and electrified vehicles combined would reach around 400,000 per year, with a contribution of 264,500 from EVs and estimated PHEV figures at 133,200.
According to this projection, there will be a constant annual growth rate of 8.64% for these types of cars from now until 2028.
The forecasts indicate that sales in the electrified vehicle market in France will reach 516,400 units, of which 372,600 will be electric and 143,800 hybrid.
But, what happened before? In recent years, the electric vehicle market in France has been developing steadily.
Even in the post-pandemic period, sales showed sustained growth, with an average annual growth of 35%, averaging the years 2020, 2021, and 2022.
The growing demand for zero and low-emission vehicles occurs in the context of the automotive sector’s growth at the national level.
Companies like Renault, Peugeot, and Citroën encourage, participate in the game, and contribute some of the most popular models among French users.
Such is the case with the Renault Zoe, Peugeot e-208, and Citroën ë-C3.
Private buyers are positioned as key players in the transition to a greener economy.
At the moment, they represent 84% of electric car acquisitions in 2023, a significant increase from the 68% recorded in 2018.
At the same time, the second-hand market is expanding, attracting individuals and professionals, with an average resale period of 70 days compared to 80 for combustion vehicles.
Also, according to a study presented by Avere-France and AAAData, rural areas in France are beginning to show a high increase in the use of zero-emission means of transportation.
This is because chargers represent greater convenience than gas stations, which are generally located far from homes in these regions.
By being able to install a home charging point, the electric vehicle becomes more attractive to farmers.
On the other hand, regarding the most relevant models, there is no trend towards an industry from a specific country.
That is, in France, vehicles of different nationalities stand out as popular in the market.
The first place goes to the Tesla Model Y, of American origin, which accumulates a total of 27,458 sales until November.
It is closely followed by the Dacia Spring, which has 21,103 units in the same period. Although Dacia is a Romanian brand, it is currently owned by Renault.
It is also produced in China. Initially, this vehicle was designed for export to that country; however, the numbers show that it is now very popular in France.
The third position is taken by the Peugeot e-208 with 19,074 units. A vehicle of entirely national origin.
State Support: Subsidies and Incentives in France
The industry’s growth is accompanied by a package of government measures aimed at creating a more favorable environment for the sale of EVs.
Following the same vision as the Decarbonization Plan proposed by the EU in 2018, the French state has enacted a series of legislations to achieve a goal.
With the aim of reaching carbon neutrality by 2050, Emmanuel Macron has promoted some incentives to increase interest in EVs.
One of the most impactful incentives is social leasing. Its main function is to allow citizens to acquire an electric vehicle without paying the total cost upfront.
The lease contract must have a minimum duration of three years. At the end of the period, the person can return the vehicle or buy it at its residual value.
Prices vary, but the fee is usually €100 or less per month, although it can reach €150 for family models.
As for the car, it must achieve the minimum environmental score, and its purchase price must be equal to or less than €47,000 to be eligible for this program.
Another state implementation as an incentive is the ecological bonus.
It is a financial aid granted to any buyer or lessee of low or zero-emission vehicles.
The amount of this government incentive is determined based on the type of vehicle motorization and its purchase price.
Currently, the value of the bonus is €5,000.
However, some sources claim that this could be reduced by 20% by January 1, 2024.
Thus, the subsidy would be modified to €4,000.