March 2012

At the heart of a market set to account for 30 to 40% of new vehicles by 2025, and 20% from as early as 2020, pure electric cars (battery-run) and hybrid rechargeable cars, with extendable battery life or fuel-cell battery, are receiving strong input from industrial players and government authorities in France, keen to address environmental concerns, boost the sector's competitiveness and secureits energy independence.

A charter signedwith the French Ministry for Industry in September 2011 lists the ten commitments which industry professionals must make when offering low-carbon vehicles and related products and services to consumers, featuring high performance benefits, quality, ease of use and safety. Highway companies, parking operators, traders and dealers have also signed up to the effort.

1-      France'sfleet of electric passenger and lightweight utility vehiclesis the largest in Europe (15,000 units) and the third-largest in the world, after the United States and Japan[1].

PSA launched the Peugeot 3008 hybrid in 2011, the world's first mass-produced hybrid diesel car. In spring 2012, the Citroen DS5, operating on the same technology, is arriving on the market, alongwith the top-range Peugeot 508 RXH. In 2012, Toyota will produce a hybrid version of the Yaris III, in Valenciennes (Nord-Pas de Calais region). For city use, Venturi (Eclectic), Goupil G3, Lumeneo (Smera and Neoma), MEGA, Micro Vett (Fiat), Tracetel (Whoop), and Courb (C Zen) are developing engine-powered tricycles and quadricycles, whileGepebus (PVI), Tecnobus, Irisbus and Gruau are bringing out buses, and Renault-Trucks a line of trucks.

Batteries are produced in France by SAFT (Lithium-Ion) and Batscap-Bolloré (Lithium MetalPolymer). Renault will start producing electric engines in Cléon (Haute-Normandie region) in 2013, and batteries (after Nissan NEC paves the way) in Flins (Paris region) in 2014. Pivotal to BMW's partnership with PSA is a hybrid components plant in Mulhouse for 2014 (Alsace region). Parts manufacturers such as Valeo are involved in the electrification of the powertrain, power electronics and vehicle weight reduction.

2- A government-backed environment. The French government's Automobile Bonus, in place since 2008, has channeled a total of €2.3 billion into the market, fostering the acquisition of 3.9 million new low-pollution vehicles. The 2012 scale maintains ambitious support through incentives ranging from €2,000 to €5,000 per low-carbon vehicle. An incentive scheme from the French Environment and Energy Management Agency ADEME alsoexists for quadricycles and certain heavy-dutyvehicles.

Significant funding (€100 million) has been allocated to emission reduction and low-carbonvehicles, within four innovation clusters dedicated to automobiles and transport solutions (Mov'eo, Id4Car, Vehicles for the Future and Lyon Urban Truck and Bus). More general support for R&D is alsoavailable through France's Research Tax Credit and the innovation agency OSEO.

Initiated in 2009, France's Plan for the Development of Rechargeable Electric and Hybrid vehicles illustrates the commitment of the French government to promotelow-carbonvehicles.

The Multi-Year Land Transport Program ("Predit N°4", backedwith €400 million of funding) allocates an average 50% of itsfunding to electric and hybridvehicles. Two technologicalplatforms are running today: Steeve Grenoble & Amiens (energystorage, piloted by the French AtomicEnergy and Alternative Energies Commission CEA and the French National Institute for IndustrialEnvironment and Risks INERIS) and Movéo'DEGE Saclay (piloted by the French Institute of Petroleum IFP). French Environment and Energy Management Agency ADEME's first tworesearchdemonstrationfunds on "lowgreenhousegas road vehicles" have been approved (€108 million). Theyalso support experimental efforts such as Kléber (rechargeable hybridvehicle in Strasbourg), SAVE (Seine Aval VE), CROME (CROss-border Mobility for Evs) with Germany, VERT (in Réunion). BMW meanwhileexperimentedwith a French fleet of Mini E cars up to the end June 2011, and willlaunch an operationalfleetwithActiveEsin 2012.

In order to guaranteefully-safeelectricvehicledeployment, in particular in underground parking lots, tests have been carried out on electricvehiclebatterysafety, in conjunctionwithgovernmentauthorities.

The Recharge Infrastructures Working Group for electricvehicles (GT IRVE), placedunder the supervision of the Ministry for Industry, isresponsible for consultation and coordination withsectorprofessionals (Schneider Electric, Legrand, Parkéon, DBT, Saintronic, Sagem.com, EDF Sodretel, Hager, etc.) on all national government issues: provisions introducedunder the Grenelle IIAct (municipality consortia, building permits, office or apartment block parking lots), Green Paperrecommendations on recharge infrastructures accessible to the public, a commondefinition of the "safeelectricvehicle", standardization, support (French GovernmentInvestment Bank CDC or the French Environment and Energy Management Agency ADEME) for experiments and recharge infrastructure deployment (eco-cities and pilot metropolitan areas havingsigned a charter in 2010).

The French government's "National Investment Program" has helpedboost support for electrochemicalstorage, through the "low-carbonenergies" segment of itsactivities. The "Vehicle of the Future" segment meanwhile focused on advancedelectricpowertrain and hybrid techniques as well as recharge stations, while also opening up a unit dedicated to funding recharge infrastructures on public highways. Already-publishedmultilateralinvestmentagreements (AMIs) have been granteda budget of over €500 million. Furthermore, the French government has announced an accreditation program and €54 million in funding for the VEDECOM Institute for Excellence in Low-Carbon Energies, specifically in the field of land transport and eco-mobility, whichwill set up a venue in Satory (Paris region) where transport playerscanworktogether to deploy new systems and new vehicles.

Lastly, the Orders Consortium steered by La Poste and coordinated by state procurement body UGAP announced in October 2011 the outcome of a call for tenders on the acquisition of 2,000

vehicles for four years. The UGAP has alsosignedpartnershipswithvariousrepresentatives of the local authorities and plans to launch a new call for tenders in 2012.

David Appia, Chairman and CEO of the Invest in France Agency (IFA) stated, "France offers a world-class platform for foreignindustrialplayerswhowish to developlow-carbonvehicles, takingadvantage of an environmenthighlyconducive to innovation and boasting top-tier training for engineers. France's innovation clusters and government incentives dedicated to the automotive sector enhance France's investment attractiveness in these technologies building the future".

 -Ends-

The Invest in France Agency (IFA)
is the national agencyresponsible for promoting and facilitating international investment in France. It alsocoordinates initiatives to promoteFrance'seconomicattractiveness. The IFA network operatesworldwide. In France, the IFA works in partnershipwithregionaldevelopmentagencies to offer international investorsoutstanding business opportunities and customized services. For further information, pleasevisitwww.investinfrance.orgsalim.saifi@investinfrance.org

© Press Release 2012