New car sales in France declined by 6.2% in January, totaling 114,673 registrations. The utility vehicle sector saw a 10% drop, while truck sales fell by 16%. Despite the downturn, electric vehicle sales remained stable at 17% market share, driven by new models. However, this share is below the 22% needed to meet EU CO2 targets. Stellantis and Renault lead the market, while plug-in hybrids, particularly from Toyota, are experiencing growth amidst overall market challenges.
Decline in New Car Sales in France
Recent statistics reveal that new car sales in France have taken a downturn, experiencing a drop of 6.2% in January. This data, released by manufacturers, indicates a challenging market landscape, although electric vehicles are showing resilience due to the introduction of new models.
In January, a total of 114,673 new passenger cars were registered, reflecting a 6.2% decrease compared to the same month last year, which also had an equal number of working days. The Automotive Platform (PFA), which represents French manufacturers and suppliers, provided these insights.
Concerns Over Market Trends
Marc Mortureux, the general director of the PFA, shared his observations, noting that the ongoing situation is reminiscent of the second half of last year, which was marked by significant challenges. He emphasized the prevailing uncertainty affecting consumer spending, which has led households to prioritize savings and businesses to curtail investments.
The decline is notably steeper in the utility vehicle sector, which saw a 10% reduction, while truck sales plummeted by 16%. Traditionally, January is not a peak month for car sales, but pre-pandemic averages sat around 150,000 registrations, whereas the current numbers reflect a 24% decrease.
Despite the overall market slump, electric vehicle sales have remained stable, maintaining a market share of 17%, up from 16% the previous month. In January, 19,923 electric passenger cars were sold, slightly below the 20,017 sold in the same month last year. This stability is attributed to the recent launch of popular models, including Renault’s electric R5 and Citroën’s C3.
However, Mortureux pointed out that a 17% market share is insufficient to meet the stringent CO2 targets set by European regulations. To comply, an average of at least 22% market share for electric vehicle sales is necessary across Europe, with France expected to exceed this average due to its advanced automotive sector.
Leading the sales charts are Stellantis (encompassing brands like Peugeot, Citroën, and Opel) and Renault, which together dominate with five and four models in the top ten, respectively. Notably, both companies are increasing their presence in the electric vehicle market, gaining ground against Chinese brands, which have faced significant declines, as well as American competitor Tesla, partly due to new taxes imposed by the EU on Chinese-made battery vehicles.
The only segment witnessing growth is plug-in hybrids, particularly benefiting from models produced by Japanese manufacturer Toyota in France. However, analysts express concern over the current order levels, suggesting a sustained weakness in registrations may continue in the upcoming months.