2024, a “worrying” or “normalization” year?

Car salespeople look grim. With 26,351 vehicles registered in 2024, they see the new market, both private and utility vehicles, falling by almost 12% compared to 2023. This is even -21% compared to a magnificent year 2019, with more than 33 000 vehicles sold.

“If we extrapolate the figures for 2024, we will do worse than 2020 when we were confined for almost two and a half months. It’s very worrying” observes Philippe-Alexandre Rebboah, president of the Réunion import and trade union (SICR) and CEO of BMW Réunion.

One of the reasons for this loss of speed is the drop in the number of electric vehicles purchased, with the end of state aid. Which resulted “a violent stop locally and nationally”continues the importer.

For Philippe Jean-Pierre, professor of economics at the University of Reunion, “we still remain in a gloomy, uncertain situation, where households are nonetheless cautious.”

“We also have explanations linked to prices which have increased, also due to taxation. The aid granted by the State has been significantly reduced in 2024, while the taxation linked to the dock dues on electric vehicles by example is increasing”deciphers the economist.

In a generally uncertain economic context, we are perhaps observing more restraint on the part of Reunionese motorists.

While the car fleet in Reunion is twice as young as in France – people change cars every six years, compared to 12 in mainland France -, “we are moving towards a form of normalization of the renewal of the fleet”believes Philippe Jean-Pierre.

The fact remains that this drop could have direct consequences on the job market, while the auto market is a real economic backbone for the region.

According to the latest Iedom study on the subject, nearly 7,000 people worked in the sector in Reunion in 2016, or 4% of commercial employment.