Fears and uncertainties weigh on the automotive market
This page is translated from the original post "Craintes et incertitudes plombent le marché automobile" in French.
- 01/07/2025 11:21
The shaken economy, social tensions, and political uncertainties leave marks on the French automotive market.
And the June 2025 figures for the French automotive market confirm this worrying trend. AAA Data, based on 17 working days out of 20, estimates that 167,000 new private car registrations were made, a drop of 8.1% compared to June 2024. Thus, the semester ends with an overall decline of 8.2%, totaling 839,700 units.
In detail, it is the fleets that suffer the most (-17%), while the private channel continues its slow erosion. The only silver lining: short-term rentals, which increased by 19% as the holidays approach, artificially boost the figures for some brands. This “tactical” strategy also helps to maintain electric vehicle volumes in businesses, although private buyers are turning away (-38%), burnt by regulatory uncertainties, difficult resale, and the volatility of subsidies.
Without references, the automotive industry suffers
For despite the recent increase in the ecological bonus (raised to €4,200 for low-income households), electric models remain behind (-12%), hindered by a significant depreciation in the used car market. The social leasing, the outlines of which were clarified at the end of June, could revive the dynamic in the upcoming school year. Now financed by energy savings certificates (CEE), it aims to democratize electric vehicles, even though the announced rents are higher than in 2023.
In contrast, hybrid engines continue to attract interest: +14% overall, +26% among individuals for HEVs, and +32% for micro-hybrids. Plug-in hybrids, however, have decreased by 18%.
Even the used car market, previously rather resilient, is slowing down with a notable drop of 6.5% in June. “This is the sixth consecutive month of decline, which started in early 2024,” recalls Marie-Laure Nivot from AAA Data. And while a slight rebound is anticipated for the upcoming school year, it will largely depend on political stability and the visibility offered to consumers.
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