The French new car market experienced a sluggish start to 2025, with total sales declining 7.8% year-on-year to 410,085 units, and March sales dropping 14.5% to 153,842 units.

This downturn was primarily fueled by a sharp decrease in demand for traditional gasoline and diesel vehicles, along with plug-in hybrids. Conversely, hybrid and pure electric vehicle (EV) sales, while the latter declined slightly, maintained robust market shares.

● In brand performance, Renault, Peugeot, and Dacia maintained their leadership positions, but Chinese brands like BYD, MG, Lingrun, and Xpeng demonstrated remarkable growth, particularly in the EV segment.

● Model-wise, the Renault Clio led the pack, with newcomers such as the Renault Symbioz and Peugeot 3008 III also featuring prominently.

01

Sales Overview of France's New Car Market

French new car sales in Q1 2025 dipped 7.8% YoY, totaling 410,085 units. March sales were particularly weak, down 14.5% YoY at 153,842 units.

● Policy shifts partly contributed to this decline, as consumers anticipated reductions in incentives and hikes in CO2 penalties, prompting an early buying spree in February and a subsequent demand lull in March.

The year-to-date decline suggests a broader market downturn, influenced by waning consumer confidence and demand.

● The powertrain market exhibited a polarized trend:

Traditional powertrains saw significant declines:

◎ Gasoline Cars: March sales plummeted 44.2% to 32,867 units, and Q1 sales dropped 34.1% to 97,951 units, accounting for 23.9% of the market.

◎ Diesel Cars: March sales fell 47.9% to 6,463 units, and Q1 sales declined 45.6% to 18,126 units, capturing just 4.4% of the market.

◎ Plug-in Hybrid Cars: March sales dropped 49.1% to 8,289 units, and Q1 sales fell 49.2% to 19,592 units, holding a 4.8% market share.

Meanwhile, non-traditional powertrains performed markedly differently:

◎ Hybrid Cars: Emerged as the market's star, with March sales surging 41.6% to 70,676 units and Q1 sales growing 47.5% to 184,267 units, commanding a 44.9% market share.

◎ Pure Electric Vehicles: March sales fell 14.7% to 29,261 units, and Q1 sales declined 7.1% to 74,519 units, maintaining an 18.2% market share, slightly down from 19.1% in Q1 2024.

Hybrid vehicles' robust growth underscores consumers' preference for energy-efficient and eco-friendly models, while EVs' stable market share indicates their solid footing in the French market.

● In brand rankings, traditional European brands dominated, but Chinese brands shone brightly:

◎ Renault: March sales dipped slightly by 0.7% YoY, capturing a 19.1% market share, its highest since June 2022, with stable Q1 performance.

◎ Peugeot: March sales fell 6.7%, holding a 15.4% market share, displaying overall stability.

◎ Dacia: March sales declined 3.7%, securing an 8.6% market share, ranking third.

◎ Citroen: March sales plummeted 20.1%, with a market share dropping to 7%, its lowest this year.

◎ Volkswagen: March sales fell 3.5%, below the market average.

◎ Toyota and BMW: March sales declined 16% and 36.6%, respectively, underperforming the market.

◎ Skoda: March sales grew 6.1%, ranking eighth, its highest ever, and the only top-14 brand to achieve positive growth.

◎ Tesla: March sales fell 36.8%, and Q1 sales dropped 41.1%, indicating poor performance.

● Chinese brands' performance in the French market was notable, becoming a key highlight of Q1:

◎ BYD: March sales soared 219.9% to 659 units, and Q1 sales grew 63.4% to 1,627 units.

◎ MG: March sales jumped 81.6% to 2,827 units, and Q1 sales increased 31.3% to 6,315 units.

◎ Lingrun: March sales surged 539.1% to 294 units, and Q1 sales leaped 351.3% to 686 units.

◎ Xpeng: As a market newcomer, Q1 sales reached 506 units, with 199 units sold in March.

Chinese brands' rapid growth is attributed to their technological edge and price competitiveness in EVs, particularly amidst policies promoting electrification and shifting consumer demand towards low-emission models.

02

Model Sales Analysis

● France's top-selling car models in Q1 2025 were:

◎ Renault Clio: Led in March with a 6.2% market share and topped Q1 with a 5.7% share, despite a 6.2% YoY sales decline.

◎ Peugeot 208: Ranked second, with March sales falling 18.4%, exceeding the market average decline.

◎ Dacia Sandero: Ranked third, with March sales dropping 26.1%, indicating weak performance.

◎ Peugeot 2008: March sales grew 2.3%, ranking fourth, overtaking Renault Captur, whose sales fell 15%.

◎ Citroen C3 IV: Fell to sixth in March but ranked third in Q1.

◎ Dacia Duster III: Remained stable at seventh.

◎ Renault Symbioz: Debuted in the top 10, ranking eighth in March, up five places from the previous month.

◎ Peugeot 3008 III: March sales surged 446.7%, maintaining a top-10 position.

◎ Renault 5: The new model featured in the top 10 for five consecutive months, ranking tenth in March.

◎ Dacia Bigster: As a newcomer, debuted at 34th, receiving positive market feedback.

● Model sales data revealed:

◎ Renault and Peugeot remain key players in the French market, but their flagship models are facing sales pressures, notably the Peugeot 208 and Dacia Sandero. Emerging models like the Renault Symbioz and Peugeot 3008 III are gaining traction, indicating strong consumer interest in innovative and technologically advanced designs.

◎ While Chinese brands haven't yet topped specific model sales charts, their overall sales surge suggests future model competition potential. Especially in EVs, Chinese brands are gradually challenging traditional European brands with their pricing strategies and technological innovations.

Summary

Amidst a significant sales downturn for traditional powertrains in Q1 2025, the French new car market witnessed the continued rise of hybrid and pure electric vehicles. Overall sales were sluggish, but the impressive growth of Chinese brands like BYD, MG, Lingrun, and Xpeng added a vibrant spark to the market landscape.