France’s car industry is set to sign a strategy agreement with the government aimed at dramatically increasing electric car sales, coinciding with a state visit by the President of China. The agreement, to be signed on Monday, aligns with President Emmanuel Macron’s goal for the nation’s carmakers to produce two million electric or hybrid vehicles by the end of the decade, despite facing stiff competition from China, the world’s top producer.
According to a finance ministry briefing, the new agreement will set an interim goal of 800,000 electric vehicle sales by 2027, a significant increase from 200,000 in 2022. Additionally, carmakers will target annual sales of 100,000 electric light utility vehicles by 2027, up from just 16,500 in 2022.
French car manufacturers are accelerating efforts to introduce more electric models following the rapid market share gains by Chinese rivals. The French government recently revised its consumer bonus scheme to favor the purchase of European-made cars, leading to a reversal in market trends.
Finance Minister Bruno Le Maire emphasized the importance of developing France’s electric car industry for the country’s energy independence. “The choice that has to be made is whether we want to be a country of (car) producers or a country of consumers. We have made the choice to be a big electric vehicle producer nation,” Le Maire stated during a news conference.
The state has allocated 1.5 billion euros ($1.6 billion) this year to support the production and purchase of electric vehicles through various programs. While nearly 20% of new cars sold in France are electric, only 12% are manufactured in the country.
The agreement between the government and the industry also includes plans for 400,000 charging points by 2030 and 25,000 quick charging points by the end of 2027 along major travel routes and in major cities.
