Tracking technologies, such as cookies, employed by Autovista24 to enhance your user experience.
French New-Car Market Experiences 6.2% Decline in January 2025
The French new-car market started the year on a slow note, with total sales dropping by 6.2% year-on-year in January 2025, according to data from AAA Data. This marks the eighth drop in registrations in nine months, indicating a concerning trend for the industry.
The decline is primarily attributed to a significant drop in petrol vehicle sales, which plummeted by 28.2% to 29,974 units, accounting for 26.1% of the market share. This decrease reflects a clear shift away from petrol-powered vehicles.
However, the story is not entirely bleak. Hybrid vehicles (HEV and MHEV) propped up the French registration totals in January 2025. HEV registrations climbed by 28.7% to 27,100 units, while MHEV registrations were up 91% year on year to 24,347 units. This growth in hybrid registrations suggests that consumers are increasingly favouring more fuel-efficient options.
The battery electric vehicle (BEV) market share was eroded in January 2025, dropping to 17.4% of total registrations, a decrease of 1 percentage point. Despite this decline, the increasing number of registrations continues to show a growing interest in electric vehicles. BEV deliveries saw a 0.5% decline in January 2025, with 19,923 units registered.
The new Renault 5 had 2,813 registrations in January 2025, securing a strong debut. Meanwhile, Citroën enjoyed a strong month, with the e-C3 placing second in the rankings of best-selling BEVs, thanks to 1,548 registrations. The Citroen C3 IV topped sales in France in January 2025, marking a notable local preference.
The decline in registrations in January 2025 represents a gap of 7,609 units compared to 2024. Notable drops were seen in Dacia's deliveries, which fell by 51%, and Tesla's registrations, which declined significantly by 63%.
The lack of growth in BEV numbers could cause concern when it comes to the Corporate Average Fuel Economy (CAFÉ) standard in Europe, as emissions targets for carmakers have been tightened this year. New plans for BEV incentives came into effect in December 2024, affecting the amount of incentives paid to buyers of new models. The maximum amount of incentives dropped for households whose tax income does not exceed €16,300, from €7,000 to €4,000.
In terms of powertrain trends, hybrids accounted for 34.8% of new car registrations in the EU in the first half of 2025, and France likely follows this trend given the size of the hybrid segment. PHEVs represented about 8.4% of new car registrations in the EU in early 2025, with plugin vehicle registrations up 18% year over year, influencing the French market as well.
The French new-car market in early 2025 is contracting compared to recent years, mainly driven by dropping petrol sales. Meanwhile, hybrids dominate powertrain shares, supported by steady growth of BEVs and PHEVs, aligning with broader European trends of increasing electrification and declining fossil fuel use in new vehicles. The Renault Clio, a consistent top-seller in France, won its 22nd annual victory in January 2025, with Renault group models performing strongly through mid-2025.
- The decline in the French new-car market could have implications in other sectors, such as the automotive industry and finance, as decreased sales may affect the revenue of car manufacturers and the overall economic growth.
- The shift towards hybrid and electric vehicles in the general-news of the French market, coupled with the tightened Corporate Average Fuel Economy (CAFÉ) standards in Europe, signals a significant change in the finance and transportation industries, with emphasis on implementing more environmentally friendly solutions.
- The French sports scene might witness a growing interest in electric vehicles as well, especially in racing categories that are moving towards electrification to reduce their carbon footprint and contribute to the ongoing global efforts to combat climate change.
