“We have chosen to take the turn towards electric, and we do not want to no going back “. While the European automobile industry is weakened by Chinese competition, Bruno Le Maire, the Minister of the Economy, reaffirmed a few days ago the government’s line of action in this sector disrupted by an energetic transition carried out vigorously in Europe. . This will materialize this Monday with the signing of the contract between the State and the automobile industry setting out reciprocal commitments to guarantee the future of the French automobile industry by 2027. A strong act at a time when France welcomes Chinese President Xi Jinping and the European elections are looming with the desire of certain partisan political parties to call into question the timetable for the end of sales of thermal vehicles in 2035.
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In the 50-page document distributed to journalists ahead of the signing, there is little new compared to the previous contract. The objective is still to produce 2 million vehicles in France in 2030 and no funding envelope for this project has been presented. The only new feature is an intermediate step by 2027. The document asks the sector to increase electric vehicles by a factor of 4 in three years, i.e. to go from 206,000 electric cars sold in 2022 to 800,000 in 2027. On the utility vehicle side, the bar is higher with a 6-fold increase in their number, to 100,000 sales in 2027.
The old contract between the government and the automobile industry aimed to increase sales of 100% electric vehicles fivefold by the end of 2022. “ We reached this goal and we even exceeded it », rejoiced the Minister of the Economy, before adding that “ we have a 19% market share in electric sales in 2024, compared to 17% in 2023 “. Problem: since the start of the year, sales of electric cars have mainly been driven by electric leasing, government aid of 13,000 euros per vehicle which allows the rental of new electric cars for between 50 and 150 euros per month.
Maintaining aid and creating a second-hand market
This leasing should also be renewed in 2025, it is specified in the contract, as well as aid for the purchase of new electric cars, currently between 4,000 euros and 7,000 euros depending on the household. And this, ” until the price of electric vehicles is equivalent to that of thermal vehicles », affirmed the cabinet of Bruno Le Maire. The amount of the bonus could, however, be lowered over time, as has already been the case this year.
Despite this aid, the price of electric vehicles still remains significantly higher than thermal engine cars. The contract thus requires manufacturers to“examine the opportunities for developing new ranges of small light vehicles, making it possible to respond in a very sober manner to certain types of use”. Several Small cars are expected by the end of the year and next year, all around 25,000 euros. The objective is to produce models below 20,000 euros before the end of this contract.
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Another price reduction lever: used electric cars. “ We want to create a second-hand market within five years », Said Marc Mortureux, the general director of the Automobile Platform, the main automobile union. To do this, the government and the industry are relying on company fleets, which they believe are too poorly electrified. A bill from the majority deputy, Damien Adam, is currently in Committee to strengthen and accelerate the greening of fleets.
Fighting the wave of Chinese cars
The document presents several axes to strengthen the sovereignty of the sector. It thus provides access to electricity at a competitive price as well as conditions facilitating the establishment of industrial processes in the region. Mentions of tax cuts for businesses do not appear, but ministers’ offices have assured that they will not budge. The State also wants to secure supplies and accelerate recycling. But the great novelty of the contract lies in the government’s intervention in relations between manufacturers and suppliers, in order to maintain all jobs in the sector on the national territory.
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“Every quarter, there will be meetings with each of the major clients, namely Stellantis, Toyota and Renault, in order to identify suppliers in serious difficulty and ensure that requests for solidarity are made and sufficiently followed up” , added the cabinet of Roland Lescure, Minister of Industry.
Even recently, it was the plastics industry that sounded the alarm about the risks of inflation on employment and the deaf ear of manufacturers to an increase in purchasing prices.
This contract should thus arm the French automobile industry against the major world automobile powers, starting with China. His signature will also come at the same time as the visit of Chinese President Xi Jinping to France. “ A coincidence of timing », Specified the office of Minister Roland Lescure. A lucky coincidence, since announcements in the automotive sector are expected at the same time.
