France to allocate €4bn to boost EV market

19 Oct 2021

The French President is planning to allocate €4 billion to the country’s auto industry to boost its electric vehicle (EV) potential, within the ‘France 2030’ plan.

Indeed, the French car industry will receive the €4 billion out of the €30 billion plan to bolster the flagging industrial economy in France. Yet the auto industry must allocate the funding to electric vehicles and public transport.

President Emmanuel Macron unveiled the France 2030 Plan last week to modernise the country’s industries and focus more on green energy, semiconductors, robotics and electric vehicles.

Macron announced the target of manufacturing two million electric vehicles and plug-in hybrids in France by 2030 and moving to total electrification.

“I want us to look ahead and recognise our weaknesses and strengths,” said Macron. “We need the land to produce more.

“We need an industrial response to the challenge of the new mode of transport. We need to focus on disruptive innovation technologies in new vehicles,” the President added.

The move by France reflects Renault’s ambition to become the global leader in the manufacturing of electric vehicles, beginning with its retro-style Renault 5.

The firm has opened an electric vehicle production hub in the north of the country.

In competition, Renault’s former domestic rival, Stellantis – the now Franco-Italian-American powerhouse – is planning to increase its Gigafactory plans with French energy company Total.

The French government maintains a 15% stake in Renault, whilst Renault owns a 44% stake in Nissan and therefore a majority stake in Mitsubishi.

As per findings from Matthias Schmidt’s EV market report, EVs had an 8% market share in France’s auto market in H1 2021, in line with the average in western Europe. Germany reached 11%, Austria 10%, whilst Norway remained at the top with a 57% share in the supply of electric vehicles in Europe.