Nearly one car in two sold is electric, this is the government’s objective for 2027

While the automobile industry must invest in electricity as quickly as possible, as required by European and national policies, it must also face competition from new players. Chinese brands and even Tesla have made electric cars their growth lever.

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In this context, the main players in the French automobile industry were invited to Bercy by the ministers concerned, in order to establish a strategic contract for the automobile sector for 2024-2027.

A 2.5-fold increase in electric car sales by 2027

This contract notably plans to reach 800,000 sales of new electric cars in France in 2027, while around 300,000 units were sold there in 2023 (16.8% market share). This represents an increase in sales volumes by approximately 2.5 in just four years. If this goal is achieved, then electric cars could represent almost half of new car sales in 2027.

Remember that only electric cars could be authorized for sale on the European market from 2035, excluding e-fuels.

This rapid growth of the electric car market in France will always be supported by purchasing aid. The envelope of 1.5 billion euros intended this year for the ecological bonus and the conversion bonus should therefore be renewed over the period 2024-2027. However, its amount will not be increased, despite significantly higher expected sales volumes. We must therefore expect a significant drop in the amount of this aid per car over the coming years.

Fortunately, electric cars are becoming cheaper to produce and many affordable models are expected to be launched in the coming years. As price parity with thermal models approaches, state aid becomes less and less essential.

To regain attractiveness in particular in the face of electric cars produced in China, the government is also planning various measures affecting the entire value chain. These are, however, still quite vague, but the State promises attractive conditions for the establishment of factories in France, or even access to carbon-free electricity. “at a competitive price”.

The objective given is to reach 2 million electrified vehicles produced in France in 2030. If a similar milestone had already been mentioned, it was a question of 2 million electric vehicles. Except for a few letters, these objectives actually don’t have much in common. Electrified vehicles can thus certainly include electric cars, but also plug-in hybrids, classic hybrids, or even micro-hybrids. This last category seems to be becoming more widespread in the automobile industry, but refers to a technology aimed at slightly reducing the consumption and emissions of internal combustion engines like any other.

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