Electric car sales plummet in France despite social leasing

© Citroën

In 2024, the government had set up an ambitious social leasing program, allowing low-income households to access electric vehicles for 100 euros per month. However, the figures speak for themselves: with a market share of 16.9%, the electric segment has lost its appeal among French consumers.

A promising start to the year quickly eclipsed

Social leasing nevertheless seemed to be keeping all its promises. The first months of 2024 saw a real craze for this scheme, generating nearly 50,000 electric vehicle registrations. The first half of the year even showed encouraging growth of 2.8%. Dealers were rubbing their hands, national manufacturers were seeing their order books fill up, and the goal of electrifying the French car fleet seemed to be on track.

This positive dynamic was abruptly reversed in the second half of the year. Political instability, marked by the dissolution of the National Assembly, cast a chill over purchasing intentions. Consumers adopted a wait-and-see position, postponing their acquisition plans in an economic context that had become uncertain. The Barnier government's decision to reduce purchasing aid from December 2024 has only accentuated this phenomenon, creating a real scissors effect on sales.

Manufacturers face a strategic dilemma

There was no shortage of new products on the French market in 2024. Citroën launched its highly anticipated ë-C3, positioned as the ultimate accessible electric car. Renault revived a myth with its new electric R5. But these late launches were not enough to reverse the downward trend in the market.

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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 capacities of consumers.

A market in search of new levers for growth

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 for action. Improving charging infrastructure remains an absolute priority. France currently has more than 100,000 public charging points, but their geographical distribution and reliability can still be improved. Manufacturers must also continue their efforts to offer vehicles with an ever more attractive price/range ratio.

The development of charging solutions in companies represents another promising avenue. Many employees could be attracted to electric vehicles if they had a charging solution at their workplace. Companies, faced with the obligation to green their fleets, represent an important growth lever for the market.

The French electric vehicle market is going through a pivotal period. This initial drop in sales does not call into question the electric transition, but it requires in-depth consideration of ways to accelerate its adoption. Industry players will need to demonstrate agility and innovation to overcome these obstacles and return to growth in 2025.

• Electric car sales fell by 2.6% in France in 2024, despite a social leasing scheme that generated 50,000 registrations
• Political instability and reduced purchase subsidies 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

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