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Summary
The global electric vehicle (EV) market has grown significantly since 2020, with sales jumping to over 10 million units by 2022, representing 14% of all new car sales and marking a considerable increase from just under 5% in 2020. This growth reflects a radical shift in the automotive industry, propelled by escalating fuel costs, technological innovations and global environmental awareness. The market size reached $384.65 billion in 2022 and is expected to continue growing at a CAGR of 17.8% until 2030, driven mainly by China's strong production and extensive recharging networks.
Europe is at the forefront of EV market development, in line with its 2050 carbon neutrality targets, as evidenced by France's electrification drive, which has seen electric car sales reach 21% of total car sales by 2020. Although France is primarily an importing country, local manufacturers such as Renault and Peugeot are playing an important role, propelling the country to nearly a million electric vehicles on the road by 2022. With the average price of electric cars set to fall below that of gasoline-powered cars, the EV market is on the verge of a transformative phase.
The rise of the electric vehicle market in France
As the wave of electric vehicles (EVs) sweeps across global markets, France is playing a key role in Europe's quest for carbon neutrality. The outlook for this sector remains dynamic; by 2022, the number of electric cars in France will have risen to between 900,000 and 1 million units, underlining a robust trajectory. The French market, although essentially an import market, is driven by established carmakers like Renault and Peugeot, who have firmly anchored their electric models in the national sphere.
Technological advances, increased production and an increasingly dense network of charging stations are the central pillars underpinning this demand. Consumer behavior and demand patterns underline the market's evolution.
Nearly 40% of French people plan to switch to a fully electric or plug-in hybrid vehicle within the next two years. This purchasing intention is higher in France than in most other European countries, with the exception of Sweden. Interestingly, this demand is geographically skewed, favoring affluent suburbs to the detriment of rural areas. For example, in departments such as Yvelines, EV purchases accounted for between 5% and 10% of total vehicle sales, a figure that falls sharply in less urbanized regions such as Orne and Creuse.
The development of charging infrastructure, while slower than expected, has finally met government targets, with around 100,000 public charging points established by 2023 and a distribution density of around 150 points per 100,000 inhabitants. However, the distribution of these installations remains uneven, with regions such as Île-de-France leading the way, and Centre-Val-de-Loire lagging behind. On the industrial front, the French automotive industry is undergoing an electrical renaissance. By 2025, France should account for a considerable share of European electric vehicle production, with figures of between 15 and 20%. These figures are promising, particularly in the context of past trends towards deindustrialization.
In terms of cost, electric car prices are highly variable, ranging from 20,000 euros for urban models to luxury models that can soar.
Key players in the French electric vehicle market
As the French electric vehicle market gathers pace, a number of key players have established themselves in this dynamic and increasingly competitive landscape. These pioneers not only set the tone, they also influence the direction of the sector as a whole.
- Tesla: American electric car giant Tesla has made its way to the top of the French electric car market. Known not only for its innovative technology but also for its stylish, high-performance vehicles, Tesla has captured the imagination of French consumers with its top-of-the-range all-electric models such as the Tesla Model S and Model X. The brand's commitment to a sustainable future and the prestige associated with its name have contributed to its market-leading position, accounting for almost a fifth of electric car sales in France.
- Renault: A historic figure in the French automotive sector, Renault has long been present in the country's electric vehicle market. A pioneer with models like the Renault ZOE, it has helped familiarize the French public with electric mobility. Although Renault's leadership status has been challenged by Tesla, the company still holds a significant share of the market, a testament to its well-established reputation and commitment to sustainable transportation solutions.
- Peugeot: Another cornerstone of the French automotive industry, Peugeot has made significant progress in the field of electric vehicles with models such as the e-208. The brand's expertise in French-style practicality and elegance resonates well with consumers, giving Peugeot a solid foothold in the electric car market.
- Dacia: Renault's Romanian subsidiary, Dacia, has surprised the market by launching an electric vehicle. The Dacia Spring, an affordable electric city car, marks the brand's commitment to offering electric mobility at an accessible price, an initiative that has the potential to democratize electric vehicles for as many people as possible.
- Fiat: Italian carmaker Fiat, although not French, has had a notable impact on the French market, particularly with its iconic Fiat 500 series, which has been electrified to meet modern demands. The combination of classic Fiat design and electric efficiency has attracted a considerable customer base in France.
- M.G.: Formerly a British sports car manufacturer, now Chinese-owned, M.G. has caught the attention of the French electric car market with its value-for-money electric vehicles. It represents the growing international diversity within the French market.
- Volkswagen: One of the world's largest automakers.
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- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 07/12/2023
Summary and extracts
1 Market overview
1.1 Market overview and definition
The electric car - a vehicle powered by electricity via a battery or fuel cell- is not a recent invention. In fact, the first experimental model of this type saw the light of day in 1935. However, it wasn't until the turn of the millennium, in 2000, that the electric car made its comeback on the market. Sales in France really took off in 2020, and the range continues to diversify, with increasingly affordable models, luxury models and utility models. Battery autonomy is a major factor in this market, depending on each model.
The global market is doing remarkably well, with sales of $384.65 billion in 2022 and an estimated CAGR of 17.8% to 2030. The global market is driven by technological advances and increasingly sustained production in countries such as China and South Korea. The development of increasingly dense networks of recharging stations is another pillar of demand, since it makes increasingly long and comfortable journeys possible. Tesla, a pioneer in the sector, has contributed to making electric cars attractive by making them an asset of distinction. Rising living standards and global environmental awareness are also contributing to strong demand.
Europe's high ambitions in terms of carbon neutrality make it a leading player in the development of the electric car market, and France is one of the main contributors. With almost a million electric cars by 2022, the French car fleet is becoming increasingly electrified, with electric car sales accounting for 21% of total car sales in 2020. France is mainly an importer in this sector, but its historic players such as Renault and Peugeot remain leaders, whose models are very popular in the hexagon.
Electric cars have a bright future ahead of them, and their average price is set to fall progressively below that of gasoline-powered cars, marking a major step forward in the development of this market.
1.2 A booming global market, dominated by China
The global electric vehicle market was estimated at $***.** billion in ****, and is expected to grow at a CAGR of **.*% to ****, a sign of strong expansion.
Sales growth projections for the global electric vehicle market World, **** - ****, in $ billions Source: ****
Factors such as rising fuel costs, global environmental awareness, growing interest in ...
1.3 Europe in pole position for the development of electric cars
In order to become a climate-neutral continent by ****, Europe is planning to implement various legislative proposals, many of which concern mobility, as transport accounts for almost a quarter of the continent's emissions. The European Commission aims to have at least ** million electric vehicles on the road by ****, a significant increase on ...
1.4 Growth in the French market
Despite a slow start due to factors such as high cost, lack of recharging infrastructure and limited public understanding, the number of electric vehihicles registered in France rose sharply during ****, despite the pandemic, the economic crisis and the shortage of semiconductors[***]. As shown in the graph below, the number of electric ...
1.5 Foreign trade based on imports
Electric cars are listed under HS code ******: passenger cars and other motor vehicles principally designed for the transport of less than ** persons, including station wagons and racing cars, with only an electric motor for propulsion (***). This code covers more vehicles than just electric cars, but it will enable us to observe ...
1.6 The impact of the Covid-19 crisis on the electric vehicle market
In ****, the market for electric and plug-in hybrid vehicles proved highly resilient and even impervious to the health crisis and prevailing gloom. the prevailing gloom, with growth of almost ***% recorded over the year, while the automotive market as a whole suffered a sharp decline of -**.*%. [***]
It should also be noted ...
2 Demand analysis
2.1 Typology of demand for electric vehicles
France is one of the European countries where the transition to electric vehicles is the most popular. Indeed, almost **% of French people plan to invest in a plug-in hybrid (***) vehicle over the next two years.
Market potential for electric and plug-in hybrid vehicles Europe, **** - ****, as % of total market Source: ****
In ...
2.2 An uneven geographical distribution of demand
Electric vehicle drivers, also known as"e-drivers", remain a minority on the roads. Electricity adoption is growing rapidly in metropolitan areas, particularly in the more affluent suburban communities surrounding these large cities. These affluent residential areas show a particular interest in electric power.
In the Yvelines département, in ****, electric car ...
2.3 A network of charging stations that is expanding, but still unevenly distributed
Initially scheduled for completion by the end of ****, the French government's objective of deploying ***,*** electric charging stations across the country has been postponed to **** due to the economic climate. The government's aim is to enable drivers to recharge their vehicles to **% in ** minutes, encouraging new habits that are more respectful of ...
2.4 The most popular models in France
In ****, the ten best-selling electric cars in France come from six different brands.
Most popular electric car models in **** France, ****, in number of registrations Source: ****
Since the start of ****, the Tesla Model Y, a much-anticipated compact SUV in Europe, has registered over **,*** registrations, topping the rankings. This model, designed for families, ...
2.5 Electricity costs and the availability of charging stations: increasingly important factors in the use of electric cars
August *, **** saw a **% increase in electricity prices, following the end of the tariff shield, causing tension in the electricity market. According to a YouGov survey carried out by Danish charging station management startup Monta, **% of electric vehicle owners express regret about their purchase due to this rate hike.
Have recent increases ...
3 Market structure
3.1 The main players in the French market
The ranking of manufacturers selling the most electric vehicles in France is changing fast. For a long time, Renault was able to establish itself on the market thanks to the Renault ZOE, with a big lead due to a lack of competition, but today the cards have been reshuffled. Today, however, ...
3.2 Electric vehicle value chain
The value system of the automotive industry as a whole is depicted in the diagram below:
French automotive industry value chain
Source: ****
However, it needs to be completed by the electromobility value chain, in order to design the production system for electric vehicles more precisely.
Electromobility value chain in France
Source: ...
3.3 Status of electric vehicle production in France
According to L'Usine Nouvelle, the European federation T&E (***) estimates that France will rank second in the production of electric vehicles in Europe by ****, with around **% of vehicles produced.
Estimated number of electric vehicles produced France, *****-*****, in thousands of units Source: ****
This might seem to counterbalance the trend we've been ...
3.4 French automotive distribution
According to L'Argus,the number of automobile sales outlets has been falling for several years. This is the case for Renault-Dacia (***).
Number and distribution of automotive sales outlets France, ****-****, in number of outlets Source: ****
The phenomenon of concentration is particularly visible within car dealerships, which is detrimental to small businesses. ...
4 Offer analysis
4.1 The different types of electric vehicles in France
***% electric vehicleselectric vehicles are equipped with an electric motor and a battery that is recharged using electricity from the grid. On the market today, they often have a range in excess of *** km, and more than meet the usual needs of urban travel. These vehicles produce no greenhouse gases (***). Extended-range electric ...
4.2 A wide range of electric vehicle prices
Thanks to a significant drop in prices and an increase in the variety of models available, electric vehicles have become more accessible to a wider public. They are designed to adapt to drivers' lifestyles. A comparison of the best electric cars and their features is provided in the table below.
Source: ...
4.3 Lower electricity prices in the years ahead
According to forecasts by Bloomberg New Energy Finance (***), the price curves for average battery-electric and gasoline-powered vehicles will tend to intersect by ****, with electric vehicle prices set to halve in just six years, in contrast to fossil-fuel vehicles, which would be on a stagnant or even upward slope in terms of ...
4.4 The different types of assistance available for the purchase of electric vehicles
According to ecologie.gouv, in order to encourage the French population to travel in a cleaner way (***), the French government has put in place certain measures to assist the purchase of electric vehicles. These subsidies are aimed at the following categories:
passenger cars (***), with a gross vehicle weight not exceeding *.* tonnes; *,*-wheelers ...
4.5 Battery production, a major challenge for electric mobility
As the battery is one of the most expensive components in an electric vehicle, its production is a crucial issue for automakers.
However, there are different strategies in the industry. While Tesla seeks to produce its batteries in-house at its Gigafactories, other players prefer to outsource battery production to some degree.this ...
5 Regulations
5.1 Current electric vehicle regulations and charging station standards
The French Ministry of Ecological Transition and Solidarity (***):
Renewal of public fleets: Article ** of the LTECV promotes the development of "clean" vehicles through the application of various decrees (***): decree no. ****-** of January **, **** on obligations for the purchase or use of low-emission vehicles by vehicle fleet managers, motor vehicle rental companies, ...
5.2 The Mobility Orientation Act
In addition, the Loi d'Orientation des Mobilités, known as the "LOM", of December **, **** brings together immediate concrete measures and medium- to long-term objectives. objectives, enabling the government to set a precise target for reducing CO* emissions from transport, with a view to achieving carbon neutrality by ****.
Fleet electrification : private companies ...
6 Positioning the players
6. Segmentation
- Tesla
- Nissan
- BMW Mottorrad
- Hyundai Motors
- Toyota
- LG Chem
- Symbio
- Saft
- Forsee Power
- Blue Solutions
- Volvo Polestar
- Polycrystal
- MG Motor France
- Audi (Volkswagen Group)
- KIA
- Mini (BMW)
- Lexus France
- Cupra (Seat group)
- Mazda
- Smart
- DS Automobiles (Stellantis)
- Abarth
- Aiways Automobile
- Fisker
- Jeep
- Chevrolet
- Aston Martin
- Cadillac
- Stellantis (Groupe PSA et Fiat)
- Renault Groupe
List of charts
- Worldwide sales of electric cars and plug-in hybrids
- Market share of electric vehicle manufacturers
- Sales forecasts for the global electric vehicle market
- Ranking of countries with the most charging stations for electric vehicles
- Growth in the number of electric cars in Europe
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Latest news
Tesla: green light from China for Elon Musk's giant battery factory - 22/12/2023
- Tesla has signed an agreement to acquire land on the outskirts of Shanghai to build a giant battery factory.
- This is their second factory in China's economic capital, the first being an automotive gigafactory installed in 2019.
- Construction of the battery plant is due to start in the early months of 2024, with commissioning scheduled for the end of next year.
- It is to have a production capacity of 10,000 batteries a year.
- The "Megapacks" business accounted for just 5% of Tesla's sales at the start of 2023, but recorded a 40% increase in sales in 2022, reaching $3.9 billion.
- Tesla installed Megapack batteries totaling 6.5 gigawatt-hours in 2021
- China asserts itself as world leader in renewable energies
Stellantis takes a radical turn in China. - 09/12/2023
- Signature of a strategic partnership with Chinese automotive start-up Leapmotor.
- Stellantis will acquire a stake of around 21% in the company for a total of 1.5 billion euros.
- The two companies will also set up a joint venture, Leapmotor International, 51% owned by Stellantis.
- Based in the Netherlands, it will "have exclusive rights to manufacture, export and sell Leapmotor products outside China"
- The Leapmotor International joint venture is targeting 500,000 sales outside China by 2030.
- Deliveries from the Leapmotor International joint venture are scheduled to begin in the second half of 2024.
- Stellantis terminated its joint venture with Guangzhou Automobile Group (GAC) in July 2022.
- Stellantis sold three local plants to the Chinese group Dongfeng.
Political inauguration of the Symbio gigafactory - 09/12/2023
- A new Symbio industrial plant was inaugurated on December 5 in Saint-Fons (Rhône, France), with an initial capacity of 16,000 fuel cell systems.
- The plant employs 750 people on site.
- Symbio has received nearly 600 million euros in European and national public funding.
- Investments planned by Symbio between 2021 and 2028 are in the region of one billion euros.
- Symbio's ambition is to produce 200,000 fuel cell systems a year and generate sales of 1.5 billion by 2030.
- The first target is to reach production of 50,000 systems a year by 2026.
- Their partner, Stellantis, has the capacity to assemble 5,000 hydrogen vehicles a year from 2024.
- Symbio hydrogen-powered vehicles sell for over €100,000
- The cost of energy represents up to 75% of the cost of hydrogen production.
Paris 2024 Olympics: Toyota relies on Forsee Power to power its electric shuttles - 08/12/2023
- Manufacturer specializing in intelligent battery systems for buses, trucks, trains, public works vehicles, scooters, City of Paris sweepers
- Plant near Poitiers, launched in 2018
- Five production sites worldwide.
- The company to supply high-density batteries for a Toyota shuttle for the Paris Olympics
- Toyota plans to line up around 2,650 electrified vehicles, plus 700 models.
- Some modules will be assembled in Portugal at Caetano, a producer of hydrogen buses in which the Japanese giant has a 27% stake.
A hydrogen pick-up: Stellantis' answer to Tesla's Cybertruck - 06/12/2023
- Stellantis aims to launch a hydrogen version of a RAM pickup in the USA in late 2026 or early 2027.
- The hydrogen-powered pickup promises a recharge time of less than ten minutes.
- Stellantis also plans to produce a hydrogen-powered utility vehicle at "industrial volumes" in Hordain, northern France, from next year.
- Toyota, another major manufacturer, presented a prototype Hilux that runs on hydrogen.
- Rivian, a new manufacturer, has already started selling its electric van, backed by Amazon and Ford.
Symbio to produce 50,000 hydrogen fuel cells annually - 06/12/2023
- Symbio aims to produce 50,000 hydrogen fuel cell systems.
- The joint venture has earmarked one billion euros for industrial deployment by 2028
- More than half of this amount comes from the Hydrogen PIIEC, a joint French and European Union funding program.
- The production site currently employs 650 people, with a further 100 or so working at the Vénissieux site.
- The French government is supporting the hydrogen industry with a €9 billion plan.
- Symbio works with around 20 customers.
- Current production capacity is 5,000 units a year, but only 400 vehicles have been ordered to date.
- The cost of a hydrogen system is currently around €10,000.
- Symbio hopes to halve this cost by 2030.
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