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Accelerated Development of Electric Vehicle Industry in France and Market Analysis

Photo: Reuters

On May 6, 2024, the French government signed a wide-ranging pact with the automotive industry to set new sales targets. It plans to quadruple the annual sales of 100% electric vehicles by 2027, achieving a sales target of 800,000 vehicles per year. This initiative indicates France’s firm commitment to developing the electric vehicle industry and the rapid development trend of the industry.

Currently, the global electric vehicle industry is developing rapidly. As of 2023, there are 14 million electric vehicles registered globally, 95% of which come from China, Europe, and the United States. Especially China, Germany, and the United States, as the leading countries in this industry, possess more mature technologies and occupy a larger market share. Therefore, the already established electric vehicle industry landscape may pose certain challenges to the future development of electric vehicles in France. However, the market recognition and demand for electric vehicles are also increasing. The sales are growing at a rate of 35% per year, almost six times more than six years ago. Meanwhile, the ratio of electric vehicles in the overall automotive market is also rising. The growth in demand for electric vehicles will bring new opportunities to the French automotive industry.
The main reasons for promoting development of the French electric vehicle industry are the inevitable trend of electric transformation and the maintenance of national independence and influence. More and more countries are transforming to electric mobility, and the development of the electric industry has become an inevitable trend under increasing environmental changes. This is mainly due to the natural advantages of electric vehicles, which serve as an important way to reduce greenhouse gas emissions and avoid environmental pollution caused by traditional fuels. Additionally, as a new industry, the development of electric vehicles can drive the development of related industrial chains, such as charging facilities, electric vehicle batteries, and core components. This will provide more jobs and opportunities for the country, promoting social and economic development.
Moreover, developing electric vehicles can prevent damage to national independence caused by over-reliance on imports of raw materials and exports of sales for electric vehicles. By reducing reliance on traditional oil resources, developing electric vehicles can better safeguard the country’s dominant position in trade and economic development. At the same time, strengthening its advantages in electric vehicle imports and exports in the increasingly mature electric market can better safeguard its influence in the global electric vehicle industry chain, laying a solid foundation for the country’s long-term interests and development.
Many countries have introduced policies to facilitate the development of electric vehicles, such as providing subsidies for car purchases, building charging infrastructures, and reducing taxes and fees. Although France did not specify new subsidy amounts in the latest contract, the government has reiterated its continuous support for electric vehicle purchases and leases. The government will promote the development of the electric vehicle industry through a series of buyer incentives, investment in charging equipment, and implementation of strict emission regulations.
The joint efforts of the French government, business groups and unions in promoting the development of the electric vehicle industry have taken new vitality into the French economy and the global electric vehicle market. This process will not only help reduce production costs, improve market competitiveness, but also create more job opportunities and promote the development of related industrial chains.
By Han Gao

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