French EV Market Sees Slight Dip in 2024 Despite Strong Finish

French EV

The French electric vehicle (EV) market experienced a slight decline in registrations in 2024, despite a record-breaking December performance.  Total registrations of battery-powered EVs reached 295,584 units, a decrease from the 303,895 units registered in 2023.  While the total number of EVs registered dipped, their overall market share remained relatively stable, accounting for 16.7% of all registrations in 2024, compared to 16.8% in the previous year.

Hybrid Vehicle Registrations Also Decline

The trend wasn't limited to battery EVs. Registrations for rechargeable hybrid vehicles also saw a decrease, falling to 147,904 units in 2024 from 162,835 units in 2023. Interestingly, this decline occurred even after the category achieved its highest-ever monthly registration figure in December 2024, with 25,138 units.

Looking Ahead: Subsidies and Government Policy

December 2023 proved to be a particularly strong month for EVs in France, with registrations reaching a record high of 38,328 units, representing 20.3% of total registrations. However, since then, the sector has seen fluctuating performance, ranging between 13.5% and 20.1% of total monthly registrations.  Looking forward, potential cuts to government subsidies for EV buyers could pose a challenge to the sector's growth.  The previous French government had proposed halving these subsidies to €700 million in 2024, down from €1.5 billion in 2023.  While the government fell in December and Francois Bayrou now leads the country, budgetary constraints are likely to persist.  The new prime minister's upcoming speech to parliament on January 14th will be closely watched for insights into the government's budgetary policies and their potential impact on the EV market.  The automotive industry and related sectors, including metals used in EV batteries and infrastructure, will be paying close attention to these developments.