Hybrid and electric cars are gaining ground in France

That’s pretty impressive growth. According to the business magazine Challenges, electric cars accounted for 7% of new car registrations in France between January and April 2021. In the same period two years ago it was only 1.8%. Compared to the previous year, however, this level remains stable.

The result is also positive for plug-in hybrids, which account for 7.3% of the market, up from 0.7% in 2019. After all, simple hybrids make up 15.7% of this (4.3% at two years).

The decline in aid fears the worst

The French manufacturers are particularly successful with these green vehicles. Our colleagues specify that “Peugeot even manages 18% of its sales in France with zero-emission or plug-in hybrid models, and Renault 27% with simple non-plug-in hybrids”.

However, some clouds are looming for the industry. The eco-bonus when buying electric cars, which is an important factor in consumers’ purchasing decisions, will even decrease from July 1st. Limited to 7,000 euros for an individual today, it will be 6,000 euros in a little less than a month and then drop to 5,000 on January 1, 2022.

The subsidy for plug-in hybrids will also be increased from 2,000 to 1,000 euros in July before it will be finally abolished in 2022. According to the experts surveyed by Challenges, hybrid or electric vehicles should continue to be significantly more expensive than thermal.

Note that opinions on this issue vary widely. According to a study by the BloombergNEF Research Institute we recently published, electric vehicles could be cheaper to manufacture than thermal vehicles by 2027. To explain this development, analysts cite one main element: the decrease in battery costs. The increase in production volumes should also lower prices, they argued.

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