Political turmoil sees France’s car sales shrink

03 September 2024 - 08:34 By Reuters
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France, one of Europe's major car markets, is one of the first in the region to publish its monthly car sales data, and the numbers could set the tone for figures due at the end of the month from the European Automobile Manufacturers' Association.
France, one of Europe's major car markets, is one of the first in the region to publish its monthly car sales data, and the numbers could set the tone for figures due at the end of the month from the European Automobile Manufacturers' Association.
Image: Tomohiro Ohsumi/Getty Images

France's new car registrations entered a decline last month as concerns over the economy weigh on consumer appetite.

By the numbers

New car registrations in August plunged 24.3% compared with the same month a year ago, data from French car lobby Plateforme de la filière automobile (PFA) showed on Sunday, while registrations for the first eight months of the year shrank by 0.5%.

Before August, registrations had been up on last year, rising by 2.2% during the first seven months.

Electric vehicles accounted for 16.8% of all new registrations, more than the EU-wide figure, but down from 18% at the end of March.

Context

French President Emmanuel Macron has not chosen a new prime minister about 50 days after a shock election delivered an unwieldy hung parliament, adding to already weak consumer confidence.

Why it is important

France, one of Europe's major car markets, is one of the first in the region to publish its monthly car sales data, and the numbers could set the tone for figures due at the end of the month from the European Automobile Manufacturers' Association.

If sluggish car sales continue, the market is likely to post a decrease over the full year, after registering a 16% rise in 2023.

Key quote

"We have had a rather dynamic start of the year (followed by) a slowdown, and we see  in August this fall in the market is worsening," said Marc Mortureux, head of the PFA.

"We do not see today anything that would allow a rapid rebound this fall.

"In the economic context, the consumer rather tends to save money, and the end of the year will also depend on the political context."


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