Market Trends of France Automotive High Performance Electric Vehicles Industry
Battery Electric Vehicles Hold the Highest Share
Advancements in battery technology and rising consumer preference for availing battery electric vehicles (BEVs) with higher mileage capacity per hour of charge are aiding the demand in the battery electric vehicles segment.
Countries worldwide are witnessing increased demand for fuel-efficient and low-emission vehicles. The limited range of electric vehicles is a major factor restraining the market's growth. OEMs have started manufacturing electric cars with a higher mobility range that goes beyond 200 miles on a single charge.
Additionally, the aggressive push by the French government to promote the adoption of BEVs to curb carbon emissions is fueling the demand for battery electric vehicles.
In September 2023, new cash incentives were announced to help consumers purchase a BEV. These incentives were expected to be rolled out in France as of January 2024, aiming to support French and European car manufacturing industries in their competition with Chinese rivals.
The battery electric vehicles segment of the market is expected to witness rapid growth due to the growing preference of auto manufacturers to expand their product portfolios to BEVs.
In May 2023, France launched its first factory for EV batteries, taking a big step in its race to build an industry dominated by China.
Similarly, by 2030, Toyota Corporation announced its plans to offer at least 30 BEV models and sell around 3.5 million BEVs a year globally. In Europe, including France, the BEV lineup will likely expand to 10 models by 2025.
Thus, such developments in the market may lead to the battery electric vehicles segment holding the highest share.
Passenger Cars Hold the Highest Share in the Market
Passenger cars have gained immense popularity among drivers over the past few years due to features such as stylish design, compact size, and economic value. Passenger cars are the most common mode of transportation in many advanced countries. The improving lifestyles, increasing purchasing power and disposable income, rising brand awareness, and growing economy are leading to changes in customer preferences worldwide, resulting in high sales of passenger cars.
Over the long term, factors such as government policies to boost EV sales may drive the EV market's growth. Several countries, including France, are implementing a Zero-Emission Vehicle (ZEV) program and have passed laws to transit the entire fleet of vehicles for public transport to be electric by 2050.
In the France 2030 investment plan framework, the French government plans to invest USD 2.75 billion to support the production of nearly two million electric and hybrid vehicles.
Automakers are also adopting strategic moves, building new production plants, making huge investments in R&D activities for advancements of EV production, and focusing on new launches.
In October 2022, BYD announced the launch of its passenger car range at the Paris Motor Show. It launched five models in France, and several key dealerships were appointed in strategic regions of the country.
Similarly, in June 2023, MG Motor, a unit of Chinese automaker SAIC Motor, announced a new leasing offer whereby drivers in France can get the company’s MG4 electric car for EUR 99 (USD 107.6) a month.
Such developments in the market are expected to propel the growth of passenger cars in France in the coming years.
