In 2024, the government implemented an ambitious social leasing program, allowing low-income households to access electricity for 100 euros per month. However, the figures speak for themselves: with a market share of 16.9%, the electric segment has lost its attractiveness among French consumers.
A promising start to the year quickly eclipsed
However, social leasing seemed to keep all its promises. The first months of 2024 saw real enthusiasm for this system, generating nearly 50,000 electric vehicle registrations. The first half even showed encouraging growth of 2.8%.. Dealers were rubbing their hands, national manufacturers saw their order books filling up, and the objective of electrification of the French automobile fleet seemed to be on track.
This positive dynamic was suddenly reversed in the second half. Political instability, marked by the dissolution of the National Assembly, has put a damper on purchasing intentions. Consumers have adopted a wait-and-see position, postponing their purchasing plans in an economic context that has become uncertain. The Barnier government’s decision to reduce purchasing aid from December 2024 has only accentuated this phenomenon, creating a real jaws effect on sales.
Manufacturers facing a strategic dilemma
However, there was no shortage of new products on the French market in 2024. Citroën launched its highly anticipated ë-C3, positioned as the accessible electric car par excellence. Renault has revived a myth with its new electric R5. But these late launches were not enough to reverse the downward trend in the market.
Manufacturers now find themselves in a delicate position. European CO2 CAFE standards are tightening, imposing ever more ambitious electric sales targets. Financial sanctions threaten those who fail to reach these thresholds. This regulatory pressure contrasts sharply with the reality of the market and the financial capabilities of consumers.
A market in search of new growth levers
The current situation reveals the limits of the electric vehicle development model in France. While social leasing has demonstrated that there is a real demand for affordable electric mobility solutions, its impact remains insufficient to support market growth on its own.
The sector must now identify new levers of action. Improving charging infrastructure remains a top priority. France today has more than 100,000 public charging points, but their geographical distribution and reliability remain subject to improvement. Manufacturers must also continue their efforts to offer vehicles with an ever more attractive price/range ratio.
The development of corporate charging solutions represents another promising avenue. Many employees could be attracted to electric power if they had a charging solution at their workplace. Companies, faced with the obligation to green their fleets, constitute an important growth lever for the market.
The French electric vehicle market is going through a pivotal period. This first drop in sales does not call into question the electric transition, but it requires in-depth reflection on the means to accelerate its adoption. Industry players will need to demonstrate agility and innovation to overcome these obstacles and return to growth in 2025.
- Sales of electric cars fell by 2.6% in France in 2024, despite a social leasing system having generated 50,000 registrations
- Political instability and the reduction in purchasing aid had a strong impact on sales in the second half of the year
- Manufacturers must find new growth levers to achieve their regulatory objectives and revive the market
