France set to embrace Electric Vehicles

President Emmanuel Macron declared that funding for the French automotive sector would be significantly expanded. Consequently, the president is responding to the PSA and Renault problem – mainly because the Corona recession is causing a sales decline. The French automotive companies’ aid package amounts to over EUR 8 billion. Over five years or longer, Macron has set the target of adding one million electric cars and trucks and being the ‘top manufacturer of such automobiles within Europe.’ 

Aid initiatives involve incentives for hybrid cars, the transformation of diesel engines into electric vehicles, an expansion in the number of charging stations, and steps to consolidate demand from several regions across France. The government incentive would grow from €6,000 in the French sector to €7,000, which is applicable to the selling cost of $45,000 for commercial sellers exclusively and for the duration of 1 June to 31 December 2020.   The premium increased from EUR 3,000 to 5,000 for retail operations of electric vehicles – over 50% of the latest car pickups purchased by business buyers in 2019.

Concerning development, Renault will be lending the majority of the assistance package, about € 5 billion. Just several days earlier, the supplier asked for this loan. However,   Bruno Le Maire had stated he would not offer the credit unconditionally. He said that Renault’s position aims to enroll in the German-French Battery Consortium on Saft, Opel, and PSA in the electric mobility field. Renault has rendered the dedication, as per Emmanuel Macron.

The French state needs Renault to send a restructuring proposal earlier in the week, thus preventing billions and plant losses, as per media sources. The state in Paris demonstrated a dedication to preserving about 1.3 million automobile-makers, vendors, and service providers. The cooperation will continue with the state proposal in this regard.  

Although the administration is the owner of the two significant French producers, Macron has checked in to secure guarantees to identify the potential output of French power vehicles. A minimum of 1 million cars will be built in France in 2025 for conventional, diesel and plug-in diesel use. Eventually, an essential indicator for transformation firms and not for automakers: a fee for the transition. After March 2020, the refurbishment of internal combustion engines with electric engines in France has recently become legal, and many firms have been skilled in that area.

On the other hand, the state has set approximately 1 billion euros on the list to improve on the Ev shift. Likewise,  To finance the French automotive sector’s growth, a project funded with EUR 200 million will be set up to provide incentives for digitalization, automation, and technological transition.