Market Trends of france automotive led lighting Industry
Increasing EV incentives to increase the sales of electric vehicles to drive the growth of the LED market
- The total automobile vehicle production in France was 1.71 million units in 2022, and it was expected to reach 1.82 million units in 2023. In France, the COVID-19 pandemic impacted every step of the automotive value chain. Compared to April 2019, sales of new cars fell by 89% in France. France had stricter regulations than other European nations during the second wave of the pandemic. Dealerships in France were requested to shut down their showrooms but were still permitted to do "click-and-collect" sales. Due to the high regulatory measures in the country, the supply chain of automotive components was hampered, resulting in lower demand for LED lights.
- The region's automakers include Groupe Renault, Volkswagen Group, Stellantis, Peugeot, and Ligier. The three main developments in the French automotive industry are electrification, automation, and connection. All three were interrelated and essential to the success of auto part manufacturers. After Germany and the United Kingdom, France accounted for roughly 14% of the EU's ECV market and registered the third-highest number of ECVs during the first three quarters of 2019.
- After the COVID-19 pandemic, the automotive industry in France has been expanding quite steadily. More people are using public transportation, and manufacturers are concentrating on electric vehicles for commercial transportation. For instance, the number of new passenger car registrations in France in December was steady at 158,006. As of January 1, 2023, France will reduce its incentives for new all-electric vehicles from EUR 6,000 to EUR 5,000 (USD 6479.04 to 5399.20). Thus, this demonstrates that the rise of LED lighting is entirely dependent upon the expansion of the automotive industry, which is still in its infancy during the forecast period.
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The LED market is driven by government subsidies and incentives to promote the sales of EV
- In 2022, passenger automobile registrations in France declined by 7.2%, with about 120,000 fewer units sold than the previous year. However, electric automobiles emerged during the crisis, surging by 131.5%. Further, more than 346,000 new plug-in electric automobiles were registered in France in 2022, up from over 315,000 in 2021. This Y-o-Y growth of 10% is much lower than in previous years. By December 2022, France had 82,107 public charging stations. That is a 53% growth in one year and a 2.6 multiplication in two years.
- As part of a restructuring strategy for the automotive industry, France planned to raise subsidy rates in May 2020. The main reason was a drop in sales caused by the Corona crisis. The maximum subsidy rate was increased from USD 6479.04 to USD 7558.88 at the time. In mid-2021, the maximum rate was reduced from USD 7558.88 to USD 6479.04. Further, in 2023, the government reduced subsidies for electric cars to USD 5399.2 from 6479.0, effective from January 2023. In France, used electric vehicles will continue to be supported with USD 1079.8 or USD 3239.5 if the household income is low.
- In May 2023, the French government announced the plan to launch its first battery factory for electric cars, a “reindustrialization” plan for France, with a clutch of factories set to emerge in the north of the country over the next three years. The government also has set a target of producing 2 million electric vehicles per year by 2030.
- Moreover, key manufacturers in this country are focusing on developing and producing automotive LEDs because the demand for EVs is growing, and LED car lights can help EVs save energy and extend their driving range, as they consume less power than halogen bulbs, such aspect is further expected to boost the demand for automotive LEDs.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing passenger car and battery electric private and utility car registrations to drive the growth of the LED market
- Increasing auto loans, leasing of automobiles, and government subsidies for EVs to promote the growth of the LED lighting market
- Government to push energy saving initiatives, increasing EV registration and subsidies to drive the LED market
- Government investment in the development of roads and installation of public lighting to drive the growth of LED lights
- Rising commercial real estate investments and EV leasing scheme to drive the sales of LED lights
- Increase in moto vehicle inhabitant, government initiatives, and upgradation from halogen to energy efficient LED lights to drive the market
- High per capita income and energy saving scheme to promote the use of LED lights
- Low cost of LED lights, modernization of streetlights, and replacement of halogen bulbs with energy-efficient lights to drive the LED market
