French Auto Market Stalls: July Sales Plunge, Electric Growth Slows

As the months go by, the automotive market in France sinks further and further. In July, registrations of new passenger cars (VPN) were down on the same period in 2023 (-2.26%), according to figures from AAAdata. A total of 126,036 cars were registered at the beginning of the summer. However, 2024 brings 3 more working days than July 2023. On a like-for-like basis, the market is down 15%. This is due, in particular, to the sharp drop in vehicle purchases by companies.

In detail, the French continue to favor hybrids, particularly small hybrids, up 52%, an engine that is increasingly appearing in automakers’ ranges. In contrast, gasoline vehicle sales are down 23%, while diesel sales are down 24%.

Electric vehicles are still treading water, with 1% growth this month, weighed down by falling sales at Tesla but also by a colossal drop in Dacia Spring registrations, the star of sales in July 2023. Since the start of the year, the vehicle has been the 88th best-selling car in France, with 2,940 units, compared with 15th place in 2023 with 17,210 units. A new Dacia Spring is due to arrive in dealerships at the end of the autumn and hopes to boost electric sales once again.

Customs duties slightly penalize Chinese vehicles. However, the latter will face stiff competition from a number of other September-released models, including the Renault 5, as well as Chinese models, beginning with Leapmotor’s, which Stellantis will market.

To avoid an explosion in sales by Chinese manufacturers, France and Europe have taken a series of preventive measures since the beginning of the year. France has restricted the 4,000-euro ecological bonus to European vehicles and, more recently, Europe has chosen to surcharge Chinese brands when they enter the continent.

Since July 4, Brussels has been imposing countervailing duties of 17.4% on Chinese manufacturer BYD, 19.9% on Geely and 37.6% on SAIC. However, the effects of these increases on monthly sales are very disparate. SAIC and its MG brand were down 16%, while BYD more than doubled its sales in the country.

Meanwhile, while sales of new electric cars in France are slipping, those of used cars are taking off.

“These have more than doubled compared with July 2023 (+124%), with almost the same volume traded (15,072 transactions) as on the new car market,” notes AAAdata in its press release.

The increase in used car sales is another sign that consumers do not have the financial resources to buy new cars, so if necessary, they seek low-cost solutions such as used cars.

Toyota is still ahead, and Renault backs off

Among automakers, the world’s number one, Japan’s Toyota, continued its upward trend in July, with sales up 29.3% thanks to its numerous hybrid models. Yesterday, the group reported higher results, despite the recent certification scandals involving certain vehicles in Japan. Stellantis posted a small 2.6% increase thanks to its Peugeot and Jeep brands.

Renault is marking time in July, down 7.86% due to its main brand. Overall, the Group has remained stable since the start of the year but is hoping for a marked improvement in the second half thanks to the arrival of Renault’s flagship models.

Volkswagen, the giant, has stabilized but is up 7% year-to-date, buoyed by Porsche, Seat and Skoda. A small consolation since the German automaker delivered 2.2 million vehicles worldwide, 3.8% fewer than in the same period in 2023, due to sales in China down 19% in the first half.