French car market still in decline in July

Another complicated month for the French automotive market. New car sales remained at a very low level in July (-7.7% year-on-year), with just over 116,000 vehicles sold, according to figures published Friday by the French Association of Manufacturers and Equipment Suppliers (PFA).

The French market, which has been in sharp decline for over a year, has fallen by 7.9% since the start of 2025, with fewer than one million cars sold, slowed in particular by the wait-and-see attitude of buyers.

The decline is affecting both private and corporate fleet purchases, AAA Data said in a press release. Only purchases by short-term rental companies are increasing.

The French market already showed one of the biggest declines in the European Union in the first half of the year (-7.9%) along with Belgium (-10.9%).

"The automotive market is not recovering and is probably taking a wait-and-see approach due to changes in government support measures for electric vehicles. The new, slightly more advantageous ecological bonus formula has not yet had a significant impact given the time between orders and deliveries," explained Marie-Laure Nivot of AAA Data.

Petrol and diesel cars are suffering from the market decline: in the first seven months of 2025, their sales fell by 34% and 41% respectively compared to the same period of the previous year.

Hybrid models (with a small electric motor and a battery that recharges while driving) continue to dominate with 53% of sales in July (+7% year-on-year).

Electric vehicles grew in July (+15%) thanks to massive fleet purchases, but the lack of interest from individuals keeps them at 17% of the market.

"Combined with the electric leasing expected at the start of the school year," the new bonus "could finally make electric cars attractive again for individuals, but will not necessarily be enough to end this long downward trend that began in spring 2024," Marie-Laure Nivot emphasized.

On the manufacturers' side, Stellantis (-8.73% over one year) regained the market lead in July after a June dominated by Renault (-7.68%).