France awaits EV revolution as China’s President Xi Jinping lands in Paris

France aims fourfold increase in the sale of electric vehicles to eight lakh per year by 2027. It also targets a sixfold increase for electric light c
BYD Seal
The French government has welcomed China's largest EV manufacturer BYD to launch its electric cars in the country and set up a facility.
BYD Seal
The French government has welcomed China's largest EV manufacturer BYD to launch its electric cars in the country and set up a facility.

The French government signed a wide-ranging pact with the automotive industry on Monday that sets new targets for electric vehicle sales, just as Chinese President Xi Jinping arrived for a state visit clouded by trade tensions in the sector.

The contract between the government, French business groups and unions aims for a fourfold increase in the sale of 100% EVs to 800,000 a year in 2027. It also targets a sixfold increase for electric light commercial vehicles to 100,000 a year.

Also check these Cars

Find more Cars
Byd Seal (HT Auto photo)
BatteryCapacity Icon 82.56 kWh Range Icon650 km
₹ 41 - 53 Lakhs
View Offers
Toyota Camry (HT Auto photo)
Engine Icon2487.0 cc FuelType IconMultiple
₹ 46.17 Lakhs
Tesla Model 3 (HT Auto photo)
BatteryCapacity Icon82kWh Range Icon 555 km
₹ 40 Lakhs
View Details
Tata Sierra Ev (HT Auto photo)
BatteryCapacity Icon69 kWh Range Icon420 Km
₹ 25 - 30 Lakhs
View Details
Mg 4 Ev (HT Auto photo)
BatteryCapacity Icon64kWh Range Icon350 km
₹ 30 - 32 Lakhs
View Details
Mahindra Xuv 3xo (HT Auto photo)
Engine Icon1197 cc FuelType IconPetrol
₹ 7.49 - 15.49 Lakhs
View Offers

While there’s no explicit amount specified for new subsidies, the government will repeat pledges to continue with support for EV purchases and leases. The contract also has a chapter on “ensuring our sovereignty" that includes stress testing supply chains for critical materials.

The new “strategic sector contract" comes as France and other countries sound the alarm over the risk of over-capacity in China’s EV market submerging their own domestic industries. In the fall, the European Commission acted on those concerns by launching an investigation into China’s support for its EV sector.

“The auto industry is part of our industrial culture and this industry is facing a once-in-a-century change," said French Finance Minister Bruno Le Maire. “The transition is difficult, with strong competition from other countries, in particular China, so we need solidarity in the sector."

EU-China friction over EVs is front and center on Xi’s two-day visit to France, where he is also meeting with European Commission President Ursula von der Leyen. The tensions have escalated into a broader spat, with Beijing launching a liquor dumping probe that could ultimately hurt French cognac makers in particular.

France has taken its own action by restricting cash support for EV purchases to vehicles with the lowest carbon footprint in production — a move that de facto excludes many Chinese-made models. It’s also the first country to use new European rules to support the nascent battery industry with green tax credits.

Still, the French government is seeking to balance a firmer approach to trade with an effort to secure Chinese investment. Speaking alongside representatives from the French auto sector, Le Maire said the government is in favor of China’s BYD Co. opening plants in France, as Japan’s Toyota Motor Corp. has in the past.

“BYD is welcome in France and the Chinese auto industry is welcome in France," he said.

Also Read : Tesla vs BYD - Which EV giant will reign supreme in India?

Watch BYD Seal electric sedan first drive review

Le Maire is addressing a Franco-China economic conference on Monday, where Xi and French President Emmanuel Macron are also due to speak.

“Europe must adopt a trade policy that protects our industry, our jobs and our technology," Le Maire said. “I decided to limit bonuses for EVs to cars that respect the strictest environmental norms, quite simply to enhance our production and confront competition that is tougher and tougher, if not ferocious."

The auto industry pact also includes a framework for cooperation on innovation, retraining, bolstering the sector’s supply chain in France, and increasing the network of recharging stations.

First Published Date: 07 May 2024, 08:41 AM IST

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.