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France Plans to Invest 1.5 Billion Euros in Electric Car Infrastructure
Nov 02, 2009

The French government has announced investment of 1.5 Billion Euros in the country for building infrastructure to run 2 Million electric and hybrid vehicles by 2020.
 
The government of France has recently announced that it is planning to invest 1.5 Billion Euros (US$ 2.2 Billion) in infrastructure building across the country for 2 Million electric and hybrid vehicles that are expected to hit the road by 2020, as reported by red Orbit.
 
The government is seeking cooperation of automotive companies, state and private vehicle fleet operators, local authorities and power & infrastructure companies for drafting the investment plan.
 
The plan seems to be a step forward in the direction of cleaning environment and is basically part of the French government’s commitment of reducing 17.5 Million tonnes of carbon dioxide emission by the end of 2020.
 
With the successful rolling out of this plan, the country also aims to reduce its dependence on oil imports by 4 Million Tons by the end of 2020. France is a major importer of oil since 65% of the overall net imports are represented by oil only. The country’s reliance on imported oil could be inferred from the fact that oil consumption in the year 2008 stood at 85 Million Tons.
 
According to a research report by RNCOS, “Global Hybrid Car Market Forecast to 2010”, France became the second largest market of hybrid cars in Europe as it accounted for nearly 14% of the overall European market in 2006. Toyota was the leader of hybrid car manufacture in France followed by Honda.
 
Hybrid car sales in Europe are projected to grow at a CAGR of over 23% between 2009 and 2012 on the back of regional governments’ efforts of encouraging people to buy environment friendly vehicles, including hybrid cars. Further, the introduction of hybrid models and commitment of leading car manufacturers such as Toyota and Lexus to raise sales could be the prime reason of hybrid car sales in future.
 
A Senior Research Analyst at RNCOS said, “France is standing on the threshold of becoming a leader in having environment friendly automotive industry due to the introduction of electric car regime. It has drafted plans to reduce carbon dioxide emission and dependence on imported oil. Moreover, the country will have an advantage of first stepping into this area.”
 
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