The adoption of plug-in electric vehicles in France is actively supported by the French government through a bonus–malus system through which provides subsidies towards the purchase of all-electric vehicles and plug-in hybrids with low emissions. The government also provides non-monetary incentives; subsidies for the deployment of charging infrastructure; and long term regulations with specific targets. Additionally, France passed a law in December 2019 to phase out sales of cars that burn fossil fuels by 2040.
, 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.
, 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 per km per child. See Chapter 3 - Car Registration Tax (‘Bonus-Malus’ system) in France pp. 15-21.
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 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 , under the bonus-malus system, was granted for the purchase of new cars with 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 . 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 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 including VAT was eligible for the maximum bonus of . 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 , and between 50 and 60 g/km were eligible to a bonus of up to . After this limit, the bonus dropped to .
The fee schedule for the bonus-malus was modified in 2013. Effective November 1, 2013, the bonus was reduced from to for all-electrics and any other vehicle with 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 , and for emissions between 61 and 90 g/km up to , down from . Effective January 1, 2014, the fee schedule for the malus was increased to a maximum penalty of from 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 , consisting of the regular bonus of for purchasing a pure electric car, plus up to for customers scrapping a diesel-powered car in circulation before 1 January 2001. In the case of plug-in hybrids with emission levels between 21 and 60 g/km, the purchase bonus is plus the scrapping premium of . Also a specific grant was introduced for families which are below the income tax threshold who buy an ordinary new or second hand car below certain emission thresholds or a hybrid or electric car.
Effective January 4, 2016, the 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 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 bonus. The 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 .
The scrappage bonus for the purchase of pure electric cars was maintained at , while the bonus for plug-in hybrid car emitting between 21 and 60 g/km was set at . 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. , the scrappage bonus of for trading in old diesel-powered cars has been granted to more than 10,000 purchase transactions.
2017 proposal , the government proposal to be in force from 1 January 2017 provides that the 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 from in 2016, but to compensate, the additional scrappage bonus will be increased to from 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 from 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 purchase bonus for plug-in hybrids with a 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 . For cars sold for less than the bonus will be gradually lowered, going from in 2020 to in 2021 and in 2022. For cars priced between and , the bonus is reduced by 50%, but the French government will certainly adapt if too many foreign cars are bought. The 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 (~ ) 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 ( ~ ) 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.
Sales
, 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 all-electric light commercial vehicles. See Statistical annex, pp. 247–252 (See Tables A.1 and A.12).
Until 2013, most plug-in cars registered in France were pure electric cars, but from 2015, sales of plug-in hybrid cars rose significantly. After the introduction of super-bonus for the scrappage of old diesel-power cars in April 2015, sales of both segments of plug-in cars surged, and for the first time the French plug-in market share passed the 1% mark, ending 2015 with a market share of 1.17% of total new car registrations that year. The stock of light-duty plug-in electric vehicles registered in France passed the 100,000 unit milestone in October 2016. Environment Minister, Ségolène Royal, said there are more than 100,000 electric vehicles currently on the road in France. The 500,000 unit milestone was achieved in February 2021. See infograh "Parc Roulant et Immatriculations Annuelles depuis Janvier 2010" - As of February 2021, a total of 504,354 plug-in electric passenger cars and commercial vans were registered in France, consisting of 354,729 all-electric cars and vans, and 149,625 plug-in hybrids in circulation.
The market share of all-electric passenger cars increased from 0.30% of new car registered in 2012, to 0.49% in 2013, and reached 0.59% in 2014. The plug-in passenger car segment, including plug-in hybrids, climbed to 1.40% in 2016, and to 1.98% of new car registrations in 2017. The segment attained a market share of 2.2% in 2018, and rose 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 during the first six months of 2020 achieved a record sales volume of 65,267 units, and a market share of 9.1%. See infograh "Parc Roulant et Immatriculations Annuelles depuis Janvier 2010" - As of June 2020, there were 344,725 plug-in electric cars and utility vans, consisting of 267,120 all-electric cars and vans, and 77,605 plug-in hybrids registered since 2010. The surge in plug-in car sales is the result of French government pandemia stimulus incentives set in May 2020, which rose the electric car purchase bonus up to for those owners scrapping their old diesel cars.