Electric alone will not save the French car market
This page is translated from the original post "L’électrique seule ne sauvera pas le marché automobile français" in French.
- 01/08/2025 17:02
In July, the French automotive market continues its slow agony despite an excessively subsidized electric market.
This decline in the French automotive market, with an 8% drop in new car registrations, affects both individuals and company fleets, proving that discounted sales to professionals are no longer enough to conceal the clear downward trend.
According to the latest data released by AAA data, electric cars do see a rebound of 15%, but this surge still depends heavily on professional fleets, which spike by 70% in this segment. Individuals, on the other hand, remain hesitant. Their purchases of electric vehicles have decreased by another 15%. The revalued and renamed ecological bonus has yet to produce tangible effects. As for social leasing, expected by the start of the school year, it could stimulate orders… but only for electric vehicles, diverting attention from hybrids and plug-in hybrids, which have until now been a solid driving force in the market.
No miracle by year-end
Today, these hybrid powertrains account for over half of new registrations (53%), with a 7% year-on-year increase. Some manufacturers are particularly committed to this, such as Toyota, Peugeot, and Ford. However, even in this area, signs of fatigue are noticeable. The case of Toyota, which is down 28% despite its significant volumes, is a clear indicator.
In the used car market, oxygen is also in short supply. After a lackluster June, July shows a further decline of 3%. The shortage of recent vehicles – a consequence of low registrations in recent years – is weighing on the market, with only older models and sales between individuals seeing growth.
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Despite the constant adaptation of manufacturers to an unstable environment and targeted public support measures, the outlook for the end of the year is far from reassuring. The private market, a historic pillar of sales, remains stagnant. And while the potential role of social leasing in boosting electric vehicles should be acknowledged, it risks further destabilizing an already fragile ecosystem. It’s up to manufacturers to bend but not break: the storm is not over.
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