The State of the New Car Market in France: A Staggering Decline
The new car market in France is currently facing a significant crisis , with a staggering 12% drop in registrations in May compared to the same month in 2024. This downturn reflects an overarching economic uncertainty affecting all manufacturers across the board.
In May 2025, a total of 123,919 passenger cars were registered in France, marking a 12.3% decline , which is more drastic than the previous month’s decline of 5.64% , according to statistics released by the Automotive Platform (PFA) this past Sunday.
The trend affects all manufacturers , with no segment of the market remaining unscathed, including both gasoline and electric vehicles . In contrast, the used car market has shown stability amidst this upheaval.
Analysts Weigh In on the Decline
“Every month since the start of the year, the market sinks deeper into crisis. This marks the fifth consecutive month of decline ,” commented Nicolas Le Bigot , interim general director of the PFA. “In the first five months of the year, the market has decreased by 8% compared to 2024, and by nearly 30% compared to 2019, a pre-Covid period.”
Notably, Stellantis has seen a 10.1% drop with 34,441 cars registered, adversely affected by its Fiat and Opel brands. Renault has maintained similar registration levels while limiting its decline to 7% , but Toyota is experiencing a sharp 25% drop. The third largest manufacturer, Volkswagen , has seen its decline deepen to nearly 12%.
The situation for Tesla is particularly concerning, as registrations in France plummeted by 67% in May with only 721 vehicles sold compared to the same month in 2024. While Tesla is undergoing a modernization of its lineup, it is also partly hindered by the public image of its CEO, Elon Musk . In 2025 thus far, Tesla has witnessed a drop of nearly 50%.
The Electric Vehicle Market Stagnates
Globally, the proportion of electric vehicles has stagnated at around 18% over the first five months of the year, with 119,475 vehicles registered, which is nearly 10,000 less than the same period last year, Le Bigot noted. In a shrinking market, this means electric vehicle sales have decreased by approximately 7% in 2025 compared to 2024.
Interestingly, there has been a rise in hybrid vehicle sales , jumping from a 30% to 45% market share between 2024 and 2025. Le Bigot suggests this shift indicates that consumers are seeking products that are more environmentally friendly, consume less fuel, and are “more economically accessible compared to electric vehicles.”
The Used Car Market: A Modest Resilience
The used car market doesn’t seem to be alleviating the downturn in new car sales, with a modest 0.3% rise reported in May, according to AAA Data . They emphasized that almost all indicators were in the red for May and do not foresee any turnaround in the coming months.
However, there are calls to monitor the potential impacts of the recent vote by the National Assembly favoring the elimination of low-emission zones (ZFE) on the market in the upcoming months.
Consumer apathy toward electric vehicles can largely be attributed to an increase in penalties for older, more polluting vehicles and a “lack of governmental support” due to budget cuts that have reduced grants for electric vehicles by two-thirds this year.
The disappointing figures from recent months can predominantly be linked to general economic stagnation , compounded by the uncertain landscape of the trade war initiated by the United States . Le Bigot highlighted that economic sentiment in France is at a historically low level , hitting households in May.
Despite these challenges, manufacturers continue to innovate and produce new models, such as the electric version of the R5 by Renault and the ë-C3 by Citroën , showcasing their commitment to evolving with the market.
Published on June 1 at 12:40, AFP