Paris, France – The French new-car market experienced its seventh consecutive monthly decline in July, with registrations falling by 7.7% to 116,378 units, according to data released by the PFA. This persistent downturn, marking the 14th decline in 15 months, underscores a challenging period for the automotive sector. However, amidst the broader slump, battery-electric vehicles (BEVs) demonstrated significant resilience, recording a robust 14.8% year-on-year growth, primarily fueled by increased fleet purchases.

The 7.7% drop in July translated to 9,659 fewer units compared to the previous year, representing the third-biggest monthly decline for 2025. Both private individual and fleet registrations saw a 10% decrease. Year-to-date, the French new-car market has contracted by 7.9%, with 958,581 models delivered, falling short of the one-million-unit mark by over 82,000 registrations.

Despite the overall market contraction, BEVs were a notable bright spot. The 14.8% growth in July, translating to 19,547 units, marked only the second time in 2025 that the all-electric segment posted year-on-year growth, achieving a 16.8% market share—up 3.3 percentage points from July 2024. This growth was predominantly driven by a significant 70% jump in fleet BEV deliveries, which now command a 22% share of fleet sales. Private BEV registrations, however, declined by 15%. The French government's revised 'electric private vehicle boost' incentive, effective July 1st and funded by energy savings certificates, offers increased subsidies of €3,100 to €4,200 based on household income. Additionally, a social leasing plan for 50,000 vehicles is anticipated to commence from September 30th, aiming to further stimulate individual EV adoption.

Hybrid vehicles, encompassing full and mild hybrids, continued to lead in volume, with 53,188 units registered in the month, a 9.8% increase year-on-year. This segment now holds a commanding 45.7% market share. Year-to-date, hybrid deliveries surged by 30.5% to 429,405 units, representing 44.8% of the total market. Conversely, plug-in hybrid (PHEV) registrations declined by 8.2% in July, with 8,415 units, maintaining a stable 7.2% market share. For the first seven months of 2025, PHEV deliveries are down 30.5% compared to the previous year.

The primary factor behind France's declining new-car market is the sharp reduction in internal combustion engine (ICE) vehicle registrations. Petrol vehicle registrations plummeted by 33.4% in July, marking their 17th consecutive monthly drop, with only 24,919 units delivered and a market share of 21.4%. Diesel vehicles continued their steep decline, falling by 28.3% to 5,999 units, securing just 5.9% of the market. Combined, ICE models accounted for only 27.3% of the market in July, a 10 percentage point drop year-on-year. Marie-Laure Nivot, head of automotive market analysis at AAA Data, commented, "The automotive market is not recovering and is undoubtedly taking a wait-and-see approach due to changes in government support measures for EVs. The new, slightly more advantageous ecological bonus formula has not yet had a significant impact given the delays between orders and deliveries."

While the new incentive schemes are designed to make EVs more attractive, particularly for private buyers, their full impact is yet to be seen. The market remains in a 'wait-and-see' phase, as consumers and fleets adapt to the evolving regulatory and economic landscape. The continued strong performance of BEVs, especially in the fleet sector, suggests a fundamental shift in demand, but the broader market recovery hinges on a more widespread adoption of electrified powertrains and a sustained decline in traditional ICE sales.