With the French automobile industry initiating a major shift towards electric cars, is this strategic choice the long-awaited game changer?
The 2024-2027 sector contract: an inevitable shift towards electric cars
Luc Chatel, president of the Automotive Platform which brings together manufacturers, equipment manufacturers and subcontractors, as well as Bruno Le Maire, Catherine Vautrin and Roland Lescure for the government, met on May 6 for the presentation of the 2024 sector contract -2027. The objective clearly stated during this meeting is for the French automobile industry to turn towards electric cars, breaking with decades of know-how on thermal engine vehicles.
This shift towards electric mobility is considered « the greatest shift in history » by Luc Chatel, and is described as a « resolute choice » by Bruno Le Maire. The latter is even targeting 800,000 sales of electric vehicles in 2027. According to him, persisting with thermal engines would only increase our dependence on foreign interests, particularly oil-producing countries. By producing electric vehicles and batteries locally, France could thus avoid simply becoming a consumer of vehicles imported from Asia or elsewhere.
Social leasing: a new wave to democratize the electric car
If the shift towards electric cars must be undertaken by the automobile industry, it must also be accessible to as many people as possible. It is with this in mind that social leasing, a promise of Emmanuel Macron’s 2022 presidential campaign, was considered. However, its implementation was laborious and ended in failure due to its success. More than fifty thousand orders for electric cars have been recorded as part of this rental option with purchase option at a monthly rent of around one hundred euros.
Faced with this observation, Bruno Le Maire announces a renewal of social leasing in 2025, albeit with a limited budget. The details of this renewal have not yet been communicated. It should be noted, however, that Chinese electric cars will remain excluded from this system. According to the government, this is not a protectionist measure, but rather a strict application of environmental criteria which favor cars built in Europe. A similar barrier, based on an “environmental score”, has also been put in place in the 2024 version of the ecological bonus, thus excluding Chinese models transported by sea.
The challenges to be met to ensure the success of this shift
Luc Chatel underlines the importance of demand aid to compensate for the structural handicaps of the French automobile industry, in particular the high cost of energy in our territory compared to that of China or the United States. It also calls for the establishment of a « European pact » between the automobile industry, the Brussels Commission and the twenty-seven Member States to combat China’s growing influence in the automobile sector. However, whether this proposal will materialize remains uncertain.
To guarantee the success of this shift towards electric cars, it is therefore crucial to maintain financial aid for purchases and to put in place incentive policies to encourage the local production of electric vehicles and batteries, while ensuring their accessibility. to all citizens. This is a major challenge for the French automotive industry, but also a unique opportunity to position itself as a leader in this booming sector. This shift towards electric cars could in fact completely transform the French automobile industry, both economically and environmentally. We just have to keep our fingers crossed that this transition goes smoothly and that the objectives set are achieved.
Source: www.sudouest.fr