Two people were injured, authorities said.
President Francois Hollande, speaking in Brussels, said the attack began shortly before 10 a.m. when a car crashed through the gate of a gas factory in Saint-Quentin-Fallavier, southeast of Lyon. The car then plowed into gas canisters, touching off an explosion, he said.
"No doubt about the intention — to cause an explosion," Hollande said, calling the attack "of a terrorist nature."