The French automobile market, second in continental Europe, risks experiencing a sixth year of historically low sales in 2025, while political and economic uncertainties currently overshadow the arrival of new models, the Automobile Industry Platform stated on Thursday ( PFA).
New car registrations in France fell 3.2% in 2024, marking a halt after their rebound in 2023 linked to a recovery effect following the chip shortage. With 1.72 million cars registered last year, the market is still a long way from the 2.2 million in 2019, the year before COVID.
“This is the fifth year in a row that we are at historically low levels (and) nothing at the moment gives us solid hopes of a real recovery in 2025,” said Marc Mortureux, director general of the main organization representing the French car industry. . “Among the quite positive factors, there is a well-renewed offer, particularly in the electricity sector, with more affordable models, but otherwise, at this stage, the prospects for 2025 are not very bright and the political and economic instability does not create a favorable context. buy new cars,” he added.
Uncertainties
In a context of budgetary restrictions and government waltz in France, car manufacturers are particularly facing uncertainties over the level of aid for the purchase of electric cars, whose market share stagnated last year at 16.9 %, while this type of engines remained stable. gaining ground so far.
This development complicates the task of achieving the new European CO2 targets that have just come into force for manufacturers already facing
excess production capacity, added Marc Mortureux.
“We are not yet back to pre-COVID levels,” said Guillaume Sicard, commercial director of the Renault brand in France. “Today it is quite difficult to predict the market because there is a lot of economic and political uncertainty and the decisions that will have to be made at the regulatory level.”
Hybrid Leadership
Renault, the leading brand in the French market, managed to close the year on a stable note (-0.2%), while the second brand in France, Peugeot, saw its registrations fall by 3.6% at the end of a stormy year for the Stellantis group. . Toyota, for its part, obtained good results with a jump of 18.1%.
Toyota and Renault have benefited from their leadership in hybrids, which continue to lead the engine list with a new record of 42.8% market share. “Renault is part of these two segments with great potential and that will experience an acceleration in their sales,” added Guillaume Sicard. In addition to the hybrid, the diamond brand is committed to expanding its electric offering, especially with the arrival of the long-awaited R5, the best-selling electric vehicle in France in November and December, the manager stated.
Thanks to this urban neo-retro, emblem of the recovery plan of the CEO of the Renault group, Luca de Meo, the share of electric vehicles in sales of the Renault brand in France has reached no less than 23% in the two last months of
2024, added Guillaume Sicard.
Source: BFM TV
