EIB Funds Grenoble Tram Fleet Renewal: EUR 60M for 38 CAF Urbos Trams

The European Investment Bank (EIB) is poised to inject EUR 60 million in financing towards the acquisition of 38 new, 44-meter-long trams for Grenoble, France. This crucial funding, currently under documentation review, will empower the Syndicat Mixte des Mobilités de l’Aire Grenobloise (SMMAG) to modernize its public transport fleet and replace aging vehicles.

The proposed EIB financing of EUR 60 million is a significant step towards SMMAG’s ambitious goal of procuring 38 state-of-the-art trams, each measuring 44 meters in length. This investment, part of a total eligible cost of EUR 189 million, will see the replacement of the current Tramway Français Standard (TFS) fleet, which has reached the end of its operational lifespan. The new Urbos trams, manufactured by CAF under a contract signed in July 2025, are designed to enhance passenger experience and operational efficiency across Grenoble and its surrounding metropolitan area.

Strategic Modernization and Sustainability

This substantial investment underscores Grenoble’s commitment to its Sustainable Urban Mobility Plan, prioritizing public transport and active mobility solutions to reduce reliance on private vehicles. The acquisition aligns with broader European Union strategies, including the European Green Deal and the Strategy for Sustainable and Smart Mobility, positioning the project as a key enabler of decarbonization and improved urban living. The inclusion of an option for over 9 additional vehicles highlights SMMAG’s forward-thinking approach to managing future mobility demands.

Operational Enhancements and Passenger Comfort

The new CAF Urbos trams are engineered for superior passenger comfort and accessibility. Featuring full air-conditioning and a 100% low-floor design, they will significantly improve access for individuals with reduced mobility. With a capacity of 281 passengers, including 82 seated, and equipped with 12 double-access doors, the trams will reduce dwell times at stations, contributing to a more efficient and fluid public transport network. Production of these advanced trams will take place at CAF’s French center of excellence for light rail and short trains.

Technical Specifications

• Tram Model: CAF Urbos
• Length: 44 meters
• Passenger Capacity: 281 (including 82 seated)
• Doors: 12 double-access doors
• Floor Design: 100% low-floor
• Features: Fully air-conditioned, adapted for reduced mobility access
• Option: Over 9 additional vehicles

Industry Context

The EIB’s significant financial commitment to Grenoble’s tram fleet renewal signals a robust European appetite for investing in sustainable public transport infrastructure. For rolling stock manufacturers like CAF, securing such large-scale orders validates their technological capabilities and manufacturing capacity, particularly within the EU. This development is indicative of a wider trend across major European cities focused on upgrading aging fleets with modern, efficient, and environmentally conscious solutions, driven by both regulatory pressures and public demand for improved urban mobility. CEOs in the rail sector should view this as a clear signal of continued investment opportunities in fleet modernization and sustainable transport projects across the continent.