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Plug-in electric vehicles in France

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As of December 2021, a total of 786,274 light-duty plug-in electric vehicles have been registered in France since 2010, consisting of 512,178 all-electric passenger cars and commercial vans, and 274,096 plug-in hybrids. Of these, over 50,000 were fully electric light commercial vehicles. The split among type of powertrain is influenced by the rules of the government subsidies, which favors pure electric vehicles over plug-in hybrids.

The plug-in passenger car segment attained a market share of 0.5% in 2013, rose to 1.2% in 2015, 2.2% in 2018, and climbed to 2.8% in 2019. Despite the global strong decline in car sales brought by the COVID-19 pandemic, plug-in electric car sales in France achieved a record market share of 11.2% in 2020, and then 18.3% in 2021. A record of 315,978 light-duty plug-in vehicles were registered in 2021, up 62% from 2020, and the light-duty plug-in segment's market share rose to 15.1% in 2021.

As of December 2019, France listed as the world's second largest market after China for light-duty electric commercial vehicles, with a stock of 49,340 utility vans in circulation. The market share of all-electric utility vans attained 1.2% of new vans registered in 2014, rose to 1.8% in 2018, but declined to 1.7% in 2019.

The Renault Zoe has led all-electric car sales in France since 2013, and is the country's all-time best selling plug-in electric car with more than 100,000 units registered through June 2020. The electric utility van segment has been led by the Renault Kangoo Z.E. with over 21,000 units sold through February 2019.

Government policies and incentives

Since 2008 France has a bonus–malus system offering a financial incentive, or bonus, for the purchase of cars with low carbon emissions, and a fee, or malus, for the purchase of high-emission vehicles. The bonus applies to private and company vehicles purchased on or after 5 December 2007 and is deducted from the purchase price of the vehicle. The malus penalty applies to all vehicles registered after 1 January 2008, and is added at the time of registration. Since 2009, every family with more than two children receives a deduction from the malus of 20 g of CO2 per km per child.

Also a variety of policies have been established to promote the adoption of plug-in electric vehicles, such as non-monetary incentives, subsidies for the deployment of charging infrastructure, and long term regulations with specific targets.

In particular, the EU regulation that set the mandatory targets for average fleet CO2 emissions for new cars has been effective in contributing to the successful uptake of plug-in cars in France in recent years. Additionally, the Assemblée Nationale passed a law in December 2019 that aims to phase out sales of cars that burn fossil fuels by 2040.

2012-2014

Until July 31, 2012, a premium up to €5,000, under the bonus-malus system, was granted for the purchase of new cars with CO2 emissions of 60 g/km or less which benefited all-electric cars and any plug-in hybrid with such low emissions. Vehicles emitting up to 125 g/km or less, such as conventional hybrids and natural gas vehicles, were granted up to €2,000. The incentive could not exceed 20% of the sales price including VAT, increased with the cost of the battery if it is rented.

Effective on August 1, 2012, the government increased the bonus for electric cars up to €7,000 but capped at 30% of the vehicle price including VAT. The price includes any battery leasing charges, and therefore, electric cars which need a battery leasing contract also are eligible for the bonus. For example, an electric car sold for €23 333 including VAT was eligible for the maximum bonus of €7,000. The emission level for the maximum bonus was raised to 20 g/km or less. Cars with emission levels between 20 and 50 g/km were eligible to a bonus of up to €5,000, and between 50 and 60 g/km were eligible to a bonus of up to €4,500. After this limit, the bonus dropped to €550.

The fee schedule for the bonus-malus was modified in 2013. Effective November 1, 2013, the bonus was reduced from €7,000 to €6,300 for all-electrics and any other vehicle with CO2 emissions of less than 21 g/km. Vehicles emitting between 21 and 60 g/km, such as plug-in hybrids and conventional hybrids, were eligible to a bonus up to €4,000, and for emissions between 61 and 90 g/km up to €150, down from €550. Effective January 1, 2014, the fee schedule for the malus was increased to a maximum penalty of €8,000 from €6,300 for vehicles emitting over 200 g/km. A neutral class applied to vehicles emitting between 91 and 130 g/km.

2015-2016

From April 1, 2015, a super-bonus was introduced, increasing the financial incentive to a cumulative total of €10,000, consisting of the regular bonus of €6,300 for purchasing a pure electric car, plus up to €3,700 for customers scrapping a diesel-powered car in circulation before 1 January 2001. In the case of plug-in hybrids with CO2 emission levels between 21 and 60 g/km, the purchase bonus is €4,000 plus the scrapping premium of €3,700. Also a specific €500 grant was introduced for families which are below the income tax threshold who buy an ordinary new or second hand car below certain CO2 emission thresholds or a hybrid or electric car.

Effective January 4, 2016, the €6,300 purchase bonus limited to 27% of the purchase price for vehicles emitting up to 20 g/km was kept. This bonus corresponds to pure electric vehicles and those equipped with a range extender. Vehicles emitting between 21 and 60 g/km were entitled to a €1,000 bonus. This bonus corresponds to the majority of plug-in hybrids. Conventional hybrid passenger cars emitting between 61 and 110 g/km with sufficient level of hybridization, with an electric motor with an output power of not be less than 10 kW, are entitle to a €750 bonus. The €10,000 super-bonus for the purchase or lease of a new all-electric car was maintained. To be eligible for the additional scrappage bonus, the old diesel-powered car have to be owned for at least a year and in circulation before 1 January 2006. The new vehicle must not be sold within 6 months of acquisition or have traveled less than 6,000 km (3,700 mi).

The scrappage bonus for the purchase of pure electric cars was maintained at €3,700, while the bonus for plug-in hybrid car emitting between 21 and 60 g/km was set at €2,500. Only individuals or professionals are eligible for the scrappage bonus. Commercial vehicles are not eligible. Neither demonstration vehicles are eligible to the superbonus unless the vehicles are sold or leased within one year following the date of first registration. As of September 2016, the scrappage bonus of €3,700 for trading in old diesel-powered cars has been granted to more than 10,000 purchase transactions.

2017 proposal

As of September 2016, the government proposal to be in force from 1 January 2017 provides that the €10,000 super-bonus for scrapping a diesel vehicle over 10 years-old will be renewed. However, the bonus for the purchase of a pure electric car will drop to €6,000 from €6,300 in 2016, but to compensate, the additional scrappage bonus will be increased to €4,000 from €3,700 in 2016. Also, the government plans to introduce a purchase price cap to the vehicles eligible for the bonus, and to introduce a new bonus for two-wheeled motor vehicles. For the more polluting vehicles, the government intends to increase the maximum malus fee to €10,000 from €8,000 in 2016 for vehicles emitting more than 191 g/km, lowering the limit from 200 g/km in 2016.

The government intends to maintain the €1,000 purchase bonus for plug-in hybrids with a CO2 emission level between 21 and 60 g/km. However, the proposal does not include anything about the conversion premium for scrapping a 10-year-old diesel car for the purchase of a plug-in hybrid. The purchase bonus for non-rechargeable hybrid vehicles will be eliminated.

2020-2022

The French government has canceled any bonus for cars priced above €60,000. For cars sold for less than €45,000 the bonus will be gradually lowered, going from €6,000 in 2020 to €5,000 in 2021 and €4,000 in 2022. For cars priced between €45,000 and €60,000, the bonus is reduced by 50%, but the French government will certainly adapt if too many foreign cars are bought. The €45,000 limit target foreign cars and specially Tesla, since less expensive French EVs (Zoe, e208, C4 Cactus, DS 3 Crossback e-tense) remain fully supported.

Controversies

Piggyback on French subsidies

In September 2013, several French news outlets reported that according to the Norwegian newspaper Dagens Næringsliv, some car dealers in Norway have been buying electric cars in France and earning the €7,000 (~ US$9,465) government subsidy. These cars are then imported to Norway and after discounting the freight costs, they are sold at a discount. Dagens Næringsliv cited the case of one dealer near Oslo with 70% of its electric car sales corresponding to vehicles imported from France, and with at least 40 Leafs imported, totaling €280,000 ( ~ US$378,600) in benefits at a cost of the French taxpayers. These dealers took advantage of a loophole in the French law, which only requires to have an address in the country when buying a new car.

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