According to recent industry analysis from Market Research Future, the France automotive industry is projected to grow from USD 131.62 billion in 2025 to USD 275.0 billion by 2035, at a CAGR of 7.65%. A central driver of this transformation is the expanding presence of France automotive industry electric vehicles. The French market is experiencing a dual dynamic: record growth for battery-electric vehicles (BEVs) alongside a structural decline in plug-in hybrids, reflecting shifting consumer preferences and regulatory pressures.

In 2025, France registered 363,130 BEVs, a 10.5% increase compared to 2023, with December setting a new monthly record of 46,282 registrations (+45.3% year-on-year). Electrified vehicles (BEV and PHEV combined) reached a 31.3% market share in December 2025, with BEVs alone accounting for 22.4%. The circulating fleet of electrified vehicles surpassed 2.5 million by the end of 2025, including approximately 1.66 million BEVs and 853,000 PHEVs. Private buyers now represent 55.8% of new BEV registrations, reflecting the impact of social leasing schemes introduced in late 2025 to improve household access to electric mobility.

The government's support has been substantial but is evolving. The eco-bonus scheme was redesigned with lifecycle carbon scoring to disadvantage Chinese-sourced vehicles, and the "eco-score" system has helped reduce the Chinese vehicle market share from 41% to 14%. However, the market faces headwinds: despite record BEV growth, total new car registrations in 2025 reached only 1.63 million, confirming a second consecutive year of decline compared to pre-pandemic levels. French domestic production in 2023 was still 40% below 2019 levels, reflecting two decades of offshoring.

Parliamentary reports have raised alarms about the fragility of the sector, which employs 350,000 workers across 4,000 industrial sites. Some senators have called for postponing the 2035 ban on new combustion engine sales, arguing that forced electrification without adequate industrial preparedness threatens sovereignty. The Minister Delegate for Industry has acknowledged openness to flexibility on the 2035 timeline while emphasizing that stronger local content requirements (targeting 75% European content) are essential for protecting French industry. As the automotive industry market continues its evolution, the balance between accelerating EV adoption and protecting domestic manufacturing remains a critical challenge. The France automotive industry continues to navigate the complex transition to electric mobility while addressing industrial competitiveness concerns.

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