Car Sales Plummet: Why Is No One Buying?

High prices, economic uncertainties, electric transition… New car sales are plummeting despite an ever-richer offering.

While manufacturers are multiplying models and innovations – from electric city cars to hybrid SUVs and highly connected vehicles – sales figures reveal a worrying trend in many markets, notably in France and Europe. In January 2026, new vehicle registrations in France fell by approximately -6.6% compared to January 2025, despite a significant increase in the share of 100% electric vehicles in the sales mix.

This paradoxical situation, characterized by an offer richer than ever but fewer buyers, can be explained by several converging factors.

The purchase price remains a major obstacle.

Even though some vehicles are becoming more accessible, the cost of a new vehicle still widely exceeds the purchasing power of many households. The average price of new cars has increased in recent years due to inflation, environmental and safety standards, and manufacturers’ strategies to move upmarket. This rise particularly affects young buyers and middle-income budgets, limiting overall demand.

Economic context and uncertainties.

Consumer hesitancy in the face of an uncertain economy – persistent inflation, high interest rates, and tax evolution prospects – has slowed purchase decisions. Sales in France continue to decline amidst political uncertainties despite the increase in purchase incentives. Paradoxical, but human.

Saturation and changing priorities.

In electrified segments, part of the demand has already been “exhausted” by enthusiastic early buyers, leading to a form of market saturation. Moreover, the total cost of ownership (purchase, insurance, maintenance) remains high, making it more rational for some to keep an older vehicle or opt for alternative usage (carpooling, soft mobility).

Ongoing technology transition.

The shift to electric vehicles is changing buying behaviors. Despite an increase in their market share, EVs still face barriers – charging infrastructure, perceived range, residual value – which make the purchase more hesitant for a large majority of drivers.

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Finally, the offering itself, although diverse, faces highly competitive segments and the pressure of low-cost imports in certain markets, making competition fiercer and prompting manufacturers to reconsider their pricing and range strategies.

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