Market Trends of France Electric Vehicles Industry
Battery Electric Vehicles Segment to have a Significant Share in the Market Studied
- Battery Electric Vehicles have an electric motor and use a large traction battery pack to power the electric motor. BEV is plugged into a wall outlet or charging equipment such as electric vehicle supply equipment. BEVs are fully electric vehicles and do not have a fuel tank, internal combustion engine, or exhaust engine, and they depend upon electricity for propulsion.
- According to the International energy agency, BEV sales in France increased from 190 in 2010 to 170,000 in 2021. At the same time, PHEV sales increased from 96 in 2011 to 140,000 in 2021. Furthermore, the government aims to reach 1.85 million by 2028 and achieve carbon emission programs by 2050.
- Lithium-ion batteries are used in battery electric vehicles for both passenger and commercial cars. Lithium-ion is a rechargeable battery and has a higher density, which is the most preferred battery for EVs. The demand for lithium-ion batteries has been increasing owing to the increase in the sale of electric vehicles in France. Further, it will lead to a rise in sales of electric vehicles during the forecast period.
- Moreover, in October 2022, Imerys, a French company, launched an EMILI (Exploitation de MIca Lithinifère par Imerys) project to mine lithium at the Beauvoir site in central France. The company is targeting the production of 34,000 metric tons of lithium hydroxide every year from 2028. Thus, the company will produce nearly 700,000 electric vehicle batteries per year. This will reduce the import of lithium batteries from other countries.
- Hence, owing to the above points, the Battery electric vehicles are expected to dominate the market during the forecast period.
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Government Initiatives to Drive the Market
- The French government has banned the sales of Internal combustion engines by 2040 to promote a carbon emission program. European Union has set a target of 30 million zero-emission vehicles by the end of 2035.
- The automotive sector in France is the second largest country in Europe. The French government has invested EUR 30 billion (around USD 27.9 billion) in 2021 and will provide up to EUR 4 billion (around USD 3.72 billion) to support the automotive industry to produce 2 million EVs by 2030.
- In 2021, total electric car registration was approximately 174,191, up from 119,737 in 2020. This represents an increase of around 45%. The factor behind abrupt growth is the French government offering subsidies of EUR 6000 (around USD 5580) for purchasing EV prices under EUR 47000 (around USD 4371), which includes both BEV and PHEV in 2021. Moreover, in 2022, the French government increased its subsidies from EUR 6000 (around USD 5880) to EUR 7000 (USD 6860).
- In October 2022, the French government announced funding of EUR 1.3 billion (around USD 1.27 billion) for an electric car; it will include a leasing scheme through which 100,000 vehicles would be made available for long-term hire at EUR 100 per month (approximately USD 98).
- Hence, owing to the above points, government initiatives to see significant growth in the Electric vehicles market during the forecast period.
