The new car market in France is currently facing a significant \u00a0crisis\u00a0, with a staggering \u00a012% drop\u00a0 in registrations in May compared to the same month in 2024. This downturn reflects an overarching economic uncertainty affecting all manufacturers across the board.<\/p>\n
In May 2025, a total of \u00a0123,919 passenger cars\u00a0 were registered in France, marking a \u00a012.3% decline\u00a0, which is more drastic than the previous month\u2019s decline of \u00a05.64%\u00a0, according to statistics released by the \u00a0Automotive Platform (PFA)\u00a0 this past Sunday.<\/p>\n
The trend affects \u00a0all manufacturers\u00a0, with no segment of the market remaining unscathed, including both gasoline and \u00a0electric vehicles\u00a0. In contrast, the \u00a0used car market\u00a0 has shown stability amidst this upheaval.<\/p>\n
“Every month since the start of the year, the market sinks deeper into crisis. This marks the \u00a0fifth consecutive month of decline\u00a0,” commented \u00a0Nicolas Le Bigot\u00a0, interim general director of the PFA. \u201cIn the first five months of the year, the market has decreased by \u00a08%\u00a0 compared to 2024, and by nearly \u00a030%\u00a0 compared to 2019, a pre-Covid period.\u201d<\/p>\n
Notably, \u00a0Stellantis\u00a0 has seen a \u00a010.1% drop\u00a0 with \u00a034,441 cars\u00a0 registered, adversely affected by its Fiat and Opel brands. \u00a0Renault\u00a0 has maintained similar registration levels while limiting its decline to \u00a07%\u00a0, but \u00a0Toyota\u00a0 is experiencing a sharp \u00a025%\u00a0 drop. The third largest manufacturer, \u00a0Volkswagen\u00a0, has seen its decline deepen to nearly \u00a012%.\u00a0<\/p>\n
The situation for \u00a0Tesla\u00a0 is particularly concerning, as registrations in France plummeted by \u00a067%\u00a0 in May with only \u00a0721 vehicles\u00a0 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, \u00a0Elon Musk\u00a0. In 2025 thus far, Tesla has witnessed a drop of nearly \u00a050%.\u00a0<\/p>\n
Globally, the proportion of electric vehicles has stagnated at around \u00a018%\u00a0 over the first five months of the year, with \u00a0119,475 vehicles\u00a0 registered, which is \u00a0nearly 10,000 less\u00a0 than the same period last year, Le Bigot noted. In a shrinking market, this means \u00a0electric vehicle sales\u00a0 have decreased by approximately \u00a07%\u00a0 in 2025 compared to 2024.<\/p>\n
Interestingly, there has been a \u00a0rise in hybrid vehicle sales\u00a0, jumping from a \u00a030% to 45% market share\u00a0 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.”<\/p>\n
The \u00a0used car market\u00a0 doesn\u2019t seem to be alleviating the downturn in new car sales, with a modest \u00a00.3% rise\u00a0 reported in May, according to \u00a0AAA Data\u00a0. They emphasized that almost all indicators were in the red for May and do not foresee any turnaround in the coming months.<\/p>\n
However, there are calls to monitor the potential impacts of the recent vote by the National Assembly favoring the elimination of \u00a0low-emission zones (ZFE)\u00a0 on the market in the upcoming months.<\/p>\n
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 \u00a0grants for electric vehicles\u00a0 by two-thirds this year.<\/p>\n
The disappointing figures from recent months can predominantly be linked to general \u00a0economic stagnation\u00a0, compounded by the uncertain landscape of the \u00a0trade war initiated by the United States\u00a0. Le Bigot highlighted that economic sentiment in France is at a \u00a0historically low level\u00a0, hitting households in May.<\/p>\n
Despite these challenges, manufacturers continue to innovate and produce new models, such as the electric version of the \u00a0R5 by Renault\u00a0 and the \u00a0\u00eb-C3 by Citro\u00ebn\u00a0, showcasing their commitment to evolving with the market.<\/p>\n