New car registrations in France began to decline last month as economic concerns weigh on consumer decisions.
In August, registration numbers fell by 24.3% compared to the same month last year, according to data from Plateforme de la Filière Automobile (PFA).
The figures published on Sunday also show that registrations for the first eight months of the year decreased by 0.5%.
Before August, registrations had grown compared to the previous year, increasing by 2.2% over the first seven months.
Electric vehicles represented 16.8% of all new registrations, a figure higher than the rest of the European Union but lower than the 18% seen at the end of March.
“We had a fairly dynamic start to the year, followed by a slowdown. Now we see that this market decline is worsening in August,” says Marc Mortureux, head of the PFA.
“We don’t see anything today that suggests a quick rebound this autumn. In the current economic context, consumers tend to save more, and the end of the year will also depend on the political situation,” he adds.
It’s worth noting that President Emmanuel Macron has yet to appoint a new Prime Minister around 50 days after a surprise election resulted in a parliament without a majority, which has further weakened consumer confidence.
Why are these figures important?
France, one of Europe’s major automotive markets, is among the first in the region to release its monthly car sales data.
These figures could set the tone for the numbers that the European Automobile Manufacturers Association (ACEA) will publish at the end of the month.
If car sales remain stagnant, the market is likely to see a decline over the year, following a 16% increase in 2023.
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