Which electric mobilities in France in 2022?

May 24, 2022 | Industry & Cleantech, Invest in France, Norway

Electric mobility has become an essential issue in the French strategy to strongly reduce emissions and accelerate the energy transition. The French government supports a strategy to accelerate the rise of the electric vehicle market, through financial incentives for equipment. In addition, the automotive industry has also reinvented electric mobility by improving its performance and autonomy. As a result, many drivers have already switched their way of driving, and even the industry has taken the sustainable shift to low-carbon mobility. As one of the countries that made this industry’s history, France has all the cards in hand to welcome international companies ready to take up the challenges raised by vehicles of the future into the next 100 years.

Come and meet the French automotive industry at EVS35 on June 11-15, 2022 to design the next electric mobilities in France! Learn more >

Figures confirm the trend for low-carbon mobility in France!

The electric mobilities sector has been gaining momentum in recent years. The covid-19 crisis has also pushed individuals and companies to reconsider their transport systems. For example, “corona cycle paths” emerged in cities immediately after lifted lockdowns. These infrastructures redesigned the transport sector, mobilities solutions, and public space sharing.

Indeed, France is a historical automobile industry country. The automobile industry based in France boasts a wealth of major automobile manufacturers and original equipment manufacturers, an extremely dense fabric of sub-contractors, and a high level of service. France is also home to startups and innovations in digital technologies, transportation, and energy.

Read more: Invest in France in automotive industry and innovation

As of April 30, 2022, there were nearly 900,000 electric and plug-in hybrid vehicles on the roads of France. The target is to have 1 million in use by the end of the year. Electric and plug-in hybrid vehicle registrations remained strong in April 2022, giving electric mobility a market share of nearly 18% last month, with almost 24,000 vehicles registered. In addition, the number of charging points has increased by 55% compared to the previous period in one year. Today, there are 60,040+ public charging stations open throughout France. On average, there is 105 electric vehicle charging infrastructures per 100,000 inhabitants.

With more than 46,000 electric vehicles on the road for a population of 5.3 million, Norway is probably the country with the highest concentration of electric cars globally. Norway is now setting the pace for its neighbors Denmark, Sweden, and Finland. A new record was broken in 2021: 64.5% of new cars sold in Norway were electric. Almost one in five vehicles in the Nordic country now runs on electricity. By 2030, about 4 million electric cars are expected to be on the road in the Nordics!

Read more: Norske Skog’s CEO chose France to invest in a greener industry

Public measures to reinforce electric mobilities in France

The research tax credit offers very attractive terms to companies (30% on research and development expenditure up to €100 million, and 5% beyond that figure) and there are multiple financial incentives to develop innovation. No automotive industry in Europe files as many patents as that of France. France is an attractive automobile destination for its excellent geographic location and the quality of its manpower and its infrastructures, making it the leading destination for job-rich foreign industrial investment in the automobile sector in Europe.

With the development of electric vehicles, a fund to support the diversification of automotive subcontractors was opened on December 17, 2021. €300 million will support projects for the development or industrialization of new products and manufacturing processes related to the electrified vehicle, its components, and growth segments outside the automotive industry. 55% of the 403 projects supported by this plan concern diversification towards low-carbon mobility!

Read more: Investing in France means being fiscally supported!

The French automotive industry invests more than €6 billion per year in R&D and is the leading patent holder in France (PFA), (with Valeo ranked second and Renault fifth). Moreover, the French startup Verkor, supported by Schneider Electric, creates a giga-factory of batteries, to meet the growth in demand for electric cars, a follow-on project to the one created by PSA and Total Energies. For example, in the face of reluctance, the performance of vehicles has improved in recent years. Today, electric cars have an average range of about 400 km. Some top-of-the-range models offer a range of over 650 km.

Read more: Ericsson’s Head of France advises Nordic investors: “Don’t hesitate and run for it!”

Incentives measures and stimulus to support the market

France is a top leading country in Europe for electric light commercial vehicles and its number two market for hybrid vehicles. By 2020, operators of public transport services must plan to acquire or use at least 50% low-emission buses and coaches when renewing their fleet from 2025. Moreover, to encourage the purchase of low-polluting vehicles, the French government offers two primary forms of financial assistance: the ecological bonus of up to €6,000 and the conversion bonus of up to €5,000. This plan includes measures to simplify and improve accessibility to terminals and provide financial support for the installation of terminals in the home. It supports, through targeted measures, the deployment of electric terminals in companies, public spaces, and private homes.

Furthermore, transporters who purchase an electrically powered truck can receive up to €150,000 in aid per vehicle. For example, the Danish producer and supplier Unicon aims to reduce its carbon footprint. To this end, it plans to order several Volvo electric vehicles. This project could even reshape the future of concrete transport in industry, where trucks are heavy and among the most difficult to electrify.

Why does sustainable transport matter?

Today’s transport sector represents one-third of greenhouse gas emissions in France. Moreover, 96% of CO2 emissions induced by transport come from the combustion of fossil fuels. This figure has risen by 11% since 1990 and is explained by the heavy dependence of transport on fossil fuels. Electric vehicles are a step toward the long-term ecological and energy transition.

Read more: Watch the replay of our webinar about the French hydrogen ecosystem in the Pays de la Loire Region!

Electric vehicles represent a long-term and sustainable solution to fight against climate change and move toward compliance with the Paris Agreement. Indeed, electric vehicles don’t emit any grams of CO2 when in use and help to fight against air pollution and emissions. Above all, electric vehicles reduce CO2 emissions by 77% over their entire life cycle, compared to a combustion model in France (source: Transport & Environnement).

 

Come and meet the French automotive industry at EVS35 on June 11-15, 2022 to design the next electric mobilities in France! Learn more >

So, contact us for free guidance on your investments projects in France!

Article written by Samy Trabelsi

Maxime Krummenacker - Communications Manager - Business France
Maxime KRUMMENACKER
Communications Manager
Maxime Krummenacker - Communications Manager - Business France
Maxime KRUMMENACKER
Communication Manager

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