The state of automobiles in France: 2024 review

Between stagnation and transformation, the automotive market in France in 2024 confirms that new vehicle buyers are confused.

In December 2024, the new passenger car market (VPN) saw a slight increase of 1% compared to the same period in 2023, benefiting from an extra working day. However, over the whole year, registrations declined by 3%, with 1,718,412 units registered compared to 1,774,722 in 2023, according to AAA Data, a specialist in automotive analysis.

A Year in Half-Tones

After a notable boost in 2023 (+16%) and an encouraging start to 2024, the market lost momentum from spring onwards, resulting in a total loss of 56,310 units. Compared to the pre-Covid period, nearly 500,000 vehicles are missing, highlighting a structural transformation in the sector.

All distribution channels are affected, but companies (14% of the market) saw the steepest decline with -12%, hindered by an uncertain economic climate. Private individuals (46% of the market) and long-term rental companies (15%) follow the general trend with a 3% decline.

Tesla Model Y dealership — For the first time, Tesla sales are down for the year. @Tesla

Marie-Laure Nivot, head of market analysis at AAA Data, notes that “the addition of an extra working day in December allowed for a modest rebound, but the decline in orders suggests a continued downtrend in 2025, excluding effects related to fiscal measures such as the bonus-malus.” Purchase aids will be reduced next year with a 2025 ecological bonus cut in half, and the details of social leasing, expected for mid-2025, are expected to be restrictive.

Despite these obstacles, electrification continues to advance thanks to the popularity of hybrids and the arrival of more affordable electric models, such as the Citroën ë-C3, the Dacia Spring, or the new Renault 5.

Tensions on Electric Vehicles and Rise of Hybrids

While registrations of electric vehicles decline by 3% in 2024, their market share stagnates at 17%. This decline is particularly visible at the end of the year (-21% in December), especially with Tesla where sales have collapsed. Conversely, hybrids are experiencing a true boom: they account for 43% of the annual market (+24%) and surpass 50% in December.

Meanwhile, internal combustion engine vehicles continue their decline, representing only 40% of sales in 2024. Diesel, once dominant, drops to 7% market share.

SUVs Still Ahead

Despite criticism of their environmental impact, SUVs continue to attract, accounting for more than 50% of December sales (+14%). Sedans, which are declining, reach 40% of registrations, while other body styles remain marginal.

Used Cars: Sustained Momentum

In the face of declining new car sales, the used car market grew by 3% over the year, totaling 5.35 million transactions. Models compliant with low emission zone restrictions (Crit’Air 1 and 2) dominate sales. Used electric vehicles, though modest, show a spectacular increase (+54%).

Rising Costs

The prices of new vehicles vary greatly depending on their powertrain. Electric models remain the most expensive in 2024, with an average price of €42,930 (+3.7%). Hybrids, slightly less costly, hover around €41,000, while gasoline models decrease to €26,774 (-4.3%). Conversely, diesel prices rise by 5.1%, reflecting its decreasing availability.

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