Invest in the french Automotive industry

France’s automotive sector has a long history of excellence. The Renault and PSA groups are among the world’s biggest car makers and motorsports suppliers.



Nearly 700,000 employees work for 5,000 companies directly or indirectly related to the automotive sector, which generates 43% of its revenues from export sales and is the number one sector in the country for patent applications.

In selecting the country that is Europe’s leading destination for foreign investment in industry, automotive sector players know they will be able to find top-tier commercial partners to grow their business and break into the markets of the future.


The French government is launching a major investment plan in the automotive sector to develop the electric, hybrid and autonomous vehicle segments.

Choose the European country offering the most generous tax treatment for research and development to launch the vehicles of the futur. 

As one of the countries that made this industry's history, France has all the cards in hand to welcome international companies ready to take up the challenges raised by vehicles of the future into the next 100 years.

Connected, smart and driverless vehicles, new engine types, vehicles that use only two liters per 100 km, new materials, safety, recycling, robotics… the list goes on!

The research tax credit offers very attractive terms to companies (30% on research and development expenditure up to €100 million, and 5% beyond that figure) and there are multiple financial incentives to develop innovation. No automotive industry in Europe files as many patents as that of France. It invests more than €5.8 billion per year in R&D.

Companies benefit from the solid innovation ecosystem, which includes four automotive-mobility excellence clusters (CARA, ID4CAR, MOV’EO, Vehicle of the Future cluster) and major public research bodies (IFP EN, IFSTTAR, CEA, Universities).

The State has supported, in particular through the Future Investments program, R&D projects in the sector to the tune of more than €650 million, for a total investment volume exceeding €2 billion supported by the automotive sector. The Government intends to extend and ramp up France's efforts in the area of innovation, maintaining a comparable level of support in the years to come and by specifically supporting disruptive innovation.

Press Kit Producing tomorrow's automobile in France

The French ambitious roadmap for tomorrow's automotive industry


France is a top leading country in Europe for electric light commercial vehicles and its number two market for hybrid vehicles. Chinese group BYD recently set up its new electric bus assembly plant in Beauvais (Hauts de France region).

Many foreign investors have already chosen France. Toyota (Japan) launched the Prius – the world’s first mass-produced full hybrid vehicle – in 1997, and the Mirai – a hybrid saloon powered by a hydrogen fuel cell – in 2014; in late January 2018, Toyota also announced a further €300 million investment in France to make a brand new vehicle, creating 700 jobs.

Other foreign manufacturers include Daimler (Germany) to make electric cars, Smart (Smart For Two Electric Drive), BYD (China) for electric buses, Bosch (Germany), Yamaha (Japan), Mitsubishi (Japan), General Motors (US), Delphi (US), Honda (Japan), BorgWarner (US) and Volkswagen (Germany).