The year 2024 was synonymous with big slowdown for the automobile market in France. Over the past year, 1 718,417 new private vehicles were registered in France, if we are to believe the figures published by the Automotive industry platform. This represents a drop in 3,2 % compared to 2023 and 22,4 % compared to figures before the Covid-19 pandemic in 2019.
>> ALSO READ: New car sales down 3.2% in 2024
“A very difficult time”
Economist specializing in the automotive world and director of the Cetelem observatory, Flavien Neuvy was the guest of C in the air (France 5) this Thursday in order to provide its analysis of the situation in the French automobile market. He initially explained that it was “a very difficult time” and that “for five years, we have been losing 400,000 to 500,000 cars per year, or around two million cars compared to the usual rate”.
Price increase impacts the market
Without much surprise, Flavien Neuvy evokes price increase as main explanatory factor of this market slowdown. “The first element is that prices have increased significantly, it is out of reach for many French households. Even those who can afford to buy a new vehicle do not always want to put so much money into purchasing a car and turn to the second-hand market.he indicates while specifying that the increase in prices is a long-term trend which has lasted for around twenty years. Thus, only 2% of French households bought a new car in 2024, a figure which could rise to 7% just a few years ago. “Political uncertainty has clearly weighed on the automotive market. (…) This uncertainty has encouraged households to postpone their projects”adds Flavien Neuvy.
Unfair regulations?
The latter also expressed his doubts concerning the Low Emission Zones (ZFE) and the entry into force of traffic restrictions for Crit'Air 3 vehicleshighlighting a certain lack of consistency. “It should be remembered that diesel vehicles from 2009 or 2010, which will be banned from circulation in certain metropolises, were purchased at the time with an ecological bonus. At the time, the State gave money to French people who bought these diesel vehicles because they emitted less CO2, and now they are banned from circulation, it is incomprehensible for households”he emphasizes. “We see that, in the metropolises concerned, the households which have these vehicles are, unsurprisingly, those with the lowest incomes and live in rather disadvantaged neighborhoods, so this poses a very important social question and can arouse anger”.
>> ALSO READ: ZFE in France: what will change on January 1, 2025
Electric also in slow motion
At a time when the energy transition is also slowing down (16.9% of BEVs sold in France in 2024), Flavien Neuvy also notes that the increase in electricity prices over the last three years “generates wait-and-see attitude”since drivers are no longer as sure of saving money in the long term by switching to electric.
