2024: the start of a revolution in electric car sales

2024: the start of a revolution in electric car sales

Electric Car: While for the moment sales of electric cars in France are mainly driven by three brand models and/or manufactured abroad, the new provisions including those included in the PLF 2024, in particular the new scales and conditions of the penalty and the ecological bonus, the “car at €100 per month” system – as well as the release of more low-cost models from French manufacturers – should have the effect of a small revolution.

For the moment, in fact, the three best-selling models in France are the Tesla Model Y, the Dacia Spring and the MG MG4, all models largely sourced from China, or manufactured in markets other than the unique (with the exception of the Model Y produced at the Berlin Gigafactory). The new systems to help with the ecological transition in fact favor models ideally made in France, or made in Europe.

French and European car manufacturers will be more highlighted in 2024

According to the L’Automobile Magazine website, the government has just forced manufacturers to send it an environmental report, to find out which models will actually be eligible for these devices. A decree to this effect will soon be published in the official journal (spring 2024). Foreign brands without factories in Europe like MG will not even submit a request, knowing in advance that it will be refused.

But even with other manufacturers, nothing is guaranteed, while the famous assessment must evaluate criteria such as management and the type of energy used in production or even the supply of various materials. According to L’Automobile Magazine, nearly a third of 2023 sales would be represented by vehicles which will not be eligible for most of the aid available in 2024.

For schemes such as the €100 per month car , the criteria are even stricter, even though this very attractive price should allow eligible vehicles to capture a large part of sales. There are also the new 2024 penalty scales, which should push more French people to turn away from purchasing a thermal car for an electric one.

Enough to easily imagine more sales of new vehicles from French and European brands, to the detriment of players with delocalized logistics chains who are currently driving the market upwards. It remains to be seen how the penalized players will react – and whether brands from China in particular can remain competitive with even more aggressive prices.

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