France

Major Developments in 2020

Despite a difficult year for the automotive sector, the development of electric mobility in France continued to progress throughout the year. For the first time, the sales of electric vehicles represented more than 10% of all the vehicles sold in a month.

Tangible measures have been introduced to support the French Government's commitment. The conversion bonus and the ecological bonus have been reset and upgraded in 2020, the latter now being available for second-hand vehicles.

To accomplish the recently set objective of 100,000 charging points at the end of 2021, charging equipment have been made compulsory in certain car parks, and several financial supports help to reduce the cost of installation of the charging points.

To guarantee the transition to electric mobility, the Government is also mobilising the automotive sector, which, through its 2018-2022 strategic contract, has pledged by 2022 to increase annual sales of 100% electric vehicles fivefold and to guarantee a ratio of one charging station for every ten vehicles in circulation.

New policies, legislation, incentives, funding, research, and taxation

The Energy Transition Law for Green Growth (LTECV) obliges certain players (State, Public establishments, communities, national companies) to integrate a share of low emission vehicle for the acquisition or use of vehicles. New vehicles acquisitions from the State and Public establishments must include at least 50% of low emission vehicles. For communities and national companies, this proportion is set at 20% before July 2021 and 30% after that date.

In France, companies are subject to the company vehicle tax (TVS). The TVS is applied according to a progressive scale based on the amount of CO2 emitted by the vehicle. The nature of this progressive scale aims to encourage companies to renew their fleet of vehicles in favour of less polluting vehicles.

Through the automotive bonus/malus system, and in the more general framework of French policy in favour of ecological transition the Government aims to support the acquisition and rental of low-emission vehicles. The amount of the bonus is established according to the level of CO2 emissions and the type of the new vehicle:

• Up to € 7,000 (within the limit of 27% of the acquisition cost) for the purchase of a new private car or a van emitting 20 grams of CO2 / km or less. In this range of emissions, the aid for a second-hand car can be up to € 1,000 .
• Up to € 2,000 for the purchase of a new private car or a van emitting between 21 grams of CO2 / km and 50 grams of CO2 / km.
• Up to € 1,000 for the purchase of a new electric 2-or 3-Wheeler.
• Up to € 50,000 (within the limit of 40 of the acquisition cost) for the purchase of a new electric of hydrogen heavy weigh vehicle.

Conversion bonus aid is available when a new vehicle is bought to replace a Diesel vehicle older than 2011 or a Gasoline vehicle older than 2006. A conversion bonus can be cumulated with the Ecological bonus. The aid depends on the emission of the new vehicle acquired:

• € 5,000 for a new vehicle purchased emitting 0 to 50 grams of CO2 / km
• € 3,000 for a new vehicle purchased emitting 51 to 137 grams of CO2 / km (WLTP).
• € 1,100 for a new electric 2- or 3- Wheeler

Outlook

France will continue to support transport electrification through a suite of incentives targeting different transport modes.