“The French and European sector is in danger today,” announced Luc Chatel, president of the automotive platform, before the Senate Economic Affairs Committee in October 2024.
Registrations of new passenger cars in France fell 11.1% year-on-year in September, according to the Automotive Platform (PFA), which groups the sectors in France. In July 2023, 131,600 new cars were sold, compared to 129,400 in July 2024, a decrease of 1.8%, according to the Ministry of Ecological Transition and Territorial Cohesion. Figures that worry manufacturers, who are seeing a decrease in the renewal of their fleet.
Stop for electric vehicles
This stop is especially marked for electric vehicles. After three years of significant growth, the increase in the first half of 2024 was very slight (1.3%). Buyers appear to be leaning more toward hybrid models (+22.3%), which account for 29.2% of the market, according to figures released in July 2024 by automakers.
This drop in sales is confirmed at the European level. “In the European market there have been considerable drops in volumes that have been observed for five years,” estimates Marc Mortureux, general director of the Automotive Platform of the BFMTV antenna this morning.
Overcapacity in factories
This leads to excess capacity in factories and therefore layoffs. According to Luc Chatel, “the automobile industry has lost 50,000 jobs in France in five years”, currently standing at 350,000 jobs in France (14 million in Europe). Recent examples are numerous. In September 2024, the German Volkswagen group terminates its employment guarantee agreement, paving the way for possible layoffs starting in 2025. In August 2024, Stellantis announces the layoffs of 2,450 people in Michigan.
Aid for the purchase of electric vehicles, in decline
An observation that, according to Marc Mortureux, “is not going to improve”, because aid is necessary to stimulate electricity sales. According to a survey by the CSA institute commissioned by the Automobile Platform, 77% of consumers would stop buying an electric car if public aid disappeared.
However, this aid is declining. In fact, the government announced in February 2024 that the bonus reserved for the purchase of new electric cars would go from 5,000 euros to 4,000 euros. The State thus focuses on the most modest households, and households below the fifth decile retain aid of 7,000 euros.
Tightening of the ecological penalty
In addition, the Barnier government announced during the presentation of its finance bills a tightening of the ecological penalty to “encourage the energy transition of the park.” Luc Chatel speaks of a “double penalty”, because gasoline and diesel engines represent 85% of the market, while sales of electric vehicles have come to a standstill.
The auto show that opens today will be a face-to-face meeting between Chinese and European manufacturers. Tensions are high as the EU prepares to impose heavy taxes on electric vehicles produced in China. At a time when the goal is to go electric to fight global warming, with the goal of having 100% electric cars by 2035, the challenges are important. “One of the causes of the difficulties of the European industry is that China is 15 years ahead of Europe in this technology,” analyzes Marc Mortureux.
“We were leaders in thermal energy, we started late in electrical energy. We are fighting and transforming to try to reach each other,” he concludes.
Source: BFM TV
