Car Sales in Free Fall

The French automobile market continues its descent into hell. In June, new car registrations fell by 7%.

This new decline confirms a persistent climate of distrust among individuals. According to the latest figures published by AAA Data, since the beginning of the year, the decline has already reached 8%, despite a comparable calendar to that of 2024. The rebound from last December now appears only as an artificial parenthesis.

The French are no longer rushing to dealerships. Despite a slight improvement in orders in June, the cumulative drop remains marked (-8%). Economic uncertainty, fiscal hesitations, and the complexity of aid obscure buyers’ benchmarks. Even recent announcements about the new ecological bonus scale – raised to €4,200 for low-income households – do not seem sufficient to restart the machine.

Electric vehicles are struggling to find their rhythm

The decline in electric cars is a good indicator. They fell by 3% over the month, but especially by 30% among individuals. The interest, once strong, is waning. Too expensive to purchase, sometimes misunderstood, and subject to rapid depreciation, they struggle to convince beyond activist or urban circles. The social leasing planned for the upcoming school year could give a boost, but its still unclear terms do not encourage patience.

Even the second-hand market, which once seemed like a refuge, is shaking. In June, it recorded a decline of 4%, its largest monthly drop since the beginning of the year. The dynamic remains vibrant among individuals (+9%), but affordable options are becoming scarce. And once again, electric models raise questions. Their presence is growing in classifieds, but their rapid depreciation is concerning. According to a AAA Data study, an electric Twingo under three years old loses 48% of its value, compared to 26% for the gasoline version. Even the Tesla Model 3 performs worse than a BMW 3 Series, despite having lower mileage.

Faced with these uncertainties, individuals are slowing their purchases, giving up on certain projects, or prolonging the use of their current vehicle. In the absence of clear signals and readable incentives, caution remains essential. The industry, however, is desperately waiting for an electric shock.

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