Major Developments in 2024

Electric Car Leasing
The leasing subsidy program for low-income households offers electric car leases for €100 a month or less. So far, 50,000 households have benefited. Contracts are for a minimum of 3 years, with no deposit required. Monthly payments are €100 or €150, excluding insurance and maintenance. The aid targets “heavy users” and is conditional on a reference tax income of €15,400 or less.

“E-Trans” Program: Support for Electric Heavy-Duty Vehicles (HDV)
This supports electric HDVs for freight and passenger transport, initially targeting small and medium-sized companies, then expanding to all sector players. The E-TRANS program supports 674 projects [Medium companies – 137 awards worth €20 million; Call for projects 537 successful worth, €110.2 million], boosting the electric truck market 4-times since 2023. Expected environmental benefit: 120,000 tCO2eq avoided per year.

Support to the Automotive Industry
The government has launched calls for projects and support programmes to aid automotive suppliers. The “CORAM 2024” call for projects, part of the “France 2030” programme, supports industrial R&D in the automotive industry. In 2023, it awarded €44 million to eleven projects, generating €115 million in R&D investment, with four projects focusing on electric vehicles. Since 2020, CORAM has supported 60 projects worth €393 million, generating €1.2 billion in R&D investment.

Electrical Car Environmental Score France supports its automotive industry’s transition to electric vehicles by focusing on vehicle demand. The reform of the automobile bonus prioritises vehicles with the highest environmental production performance. This reduces the proportion of electric vehicles purchased in France that are produced under less sustainable conditions due to the country’s energy mix.

Tax Credit
The tax credit for green industry investment (C3IV), part of the Green Industry Act, started in March 2024. It provides 20% funding for projects in energy transition sectors, including batteries, wind power, solar panels, and heat pumps. The C3IV aims to generate €23 billion in investment and create 40,000 jobs by 2030, reducing emissions by 35 million tonnes of CO2. It is one of Europe’s most attractive incentives for supporting green industries.

Batteries Value Chain
Four companies received support through the IPCEI Batteries programme, including one cell gigafactory and four advanced materials projects. Verkor and Prologium were authorised for two gigafactories in 2023. Public support totals €2.6 billion, with over €10 billion in private investments. Additionally, €550 million has been invested in over 80 projects to reduce dependence on raw materials through initiatives like lithium extraction and recycling.

Sector Insights

Changes in EV Uptake
In 2024, France reached two milestones: over 150,000 public charging points and more than two million electric and plug-in hybrid vehicles on the road. By year-end, 464,714 new light electric and plug-in hybrid vehicles were registered, making up 22% of the market. This includes 317,501 electric vehicles and 147,213 plug-in hybrids. On December 31, 2024, France had 154,694 public charging points, a 31% increase from the previous year.

Demonstration Projects

On the A10 highway near Saint-Arnoult, work has begun on an induction charging experiment. By spring 2025, electric vehicle prototypes will be able to recharge while driving on the highway. The “Charge as you drive” project consists of installing copper coils under the asphalt pavement. These coils then generate an electromagnetic field. Under the vehicle chassis, receiver coils capture this electromagnetic field and transform it into electricity to power the engine and recharge the batteries at the same time. The aim is to reduce the size and weight of on-board batteries, which in turn will mechanically increase range and reduce downtime at charging stations.

This will also help reduce the need for raw materials to produce the batteries. 1,500 meters of highway are currently being fitted out, and the first prototype runs are scheduled for spring 2025. This project, the world’s first of its kind on a highway open to traffic, is led by VINCI Autoroutes, VINCI Construction, Electreon, Hutchinson, the Gustave Eiffel University, and with the support of Bpifrance.