New Car Sales Decline, Hello Sadness!

With a seventh consecutive month of decline, the French automotive market continues to drop, and it doesn’t look like it will improve anytime soon.

AAA Data, a specialist in augmented data, recorded 133,319 new passenger vehicle registrations (VPN) last month, representing a 13% decrease in the French market compared to November 2023. To put this double-digit decline into perspective, there were 21 working days last year compared to only 19 this year. Nevertheless, over the first 11 months of 2024, the decrease reaches 4%, and December could still further lower these figures with the regulatory changes planned for 2025. Between discussions on the finance law and a bonus that could drop from 7,000 to 4,000 euros for modest households and much less for others, uncertainty prevails, and that’s never good for business.

These purchase incentives have always played a key role. We saw a peak in electric vehicle registrations at the end of 2023, just before the bonus reduction, and another in September 2024, before the end of the social leasing scheme. In October, their market share hit a low at 15%, but it rose again in November to around 18%, close to the average of the past two years. Meanwhile, the government aims for an unrealistic target of 66% in 2030 while reducing the bonuses. Continuing to boast about such ambitious goals while cutting purchase aids is a reflection of the French political mentality across the board. Incoherent? No, simply disheartening.

In terms of manufacturers, Renault is doing very well despite a general decline in electric vehicles (-24% compared to November 2023). Thanks to its Renault 5 and Scenic models, the brand has increased by 77%, with the first and fourth spots in the electric car rankings. Peugeot and Citroën are not left behind, with respective increases of 32% and 286% (thanks to the new ë-C3). Conversely, Tesla plunges (-60%), as do Dacia Spring (-72%), Kia (-70%), Hyundai (-51%), and Fiat (-63%). MG, penalized by a surcharge of 35.3%, collapses (-80%), while BYD, despite a 17% tax, is skyrocketing in sales (+400%).

For hybrids, it’s a perfect score: +17%, accounting for nearly half of VPN registrations. Traditional hybrids (HEV) dominate with 21% of the market (+8%), and micro-hybrids (MHEV) explode at +71%, reaching 19% market share. Not surprising: it costs less for manufacturers to “green” their ranges while avoiding environmental taxes. Conversely, plug-in hybrids (PHEV), threatened by the potential loss of several tax benefits, decline by 20% and remain at 9% of the market.

Finally, in terms of body styles, SUVs see a slight decline (-4%) but still represent over 50% of sales. Sedans, on the other hand, are down 21%, with a 42% market share. And for those imagining SUVs as giant, ultra-heavy vehicles: only 3% belong to segments E and F (the largest). Most are medium-sized SUVs, much more common on our roads.

READ ALSO: Tesla: -43.2% sales in August 2024, the collapse continues