The French auto market saw a significant slowdown in electric vehicle (EV) sales in August 2024, with plugin EVs accounting for just 22.4% of the market, a drop from 25.7% year-on-year (YoY). Both battery electric vehicles (BEVs) and plugin hybrids (PHEVs) suffered declines of over 33%, outpacing the overall market drop, which saw a total of only 85,977 units sold — the weakest August since 2014.
France EV Market Share
In August, BEVs made up 15.2% of the market, while PHEVs accounted for 7.2%. These figures represent a notable decrease from last year’s 17.3% and 8.4%, respectively. The decline is stark, especially considering that January to April saw a 27.7% YoY increase in BEV volumes. However, from May to August, BEV volumes have slumped by 9.3% YoY, leading to an overall year-to-date (YTD) volume increase of just 8.1%.
Factors Behind the Slowdown’
Several factors have contributed to this downturn in France’s EV market:
- Incentive Cuts: The mid-March reduction in incentives for non-European BEVs has had a considerable impact, making these vehicles less attractive to consumers.
- Temporary Social-Leasing Programme: A short-lived boost from the social-leasing programme at the start of the year has faded, leaving a void in the market.
- EU Anti-China Tariffs: The introduction of anti-China tariffs in July has further strained the market, particularly affecting the affordability and availability of EVs.
Hybrid Vehicles Take Up the Slack
While EV sales have struggled, traditional hybrids (HEVs) have gained ground. HEV volumes, including mild hybrids, are up 36% YoY, capturing a 31.9% market share. This shift suggests that consumers are turning to hybrids as a more affordable or accessible alternative in the face of declining EV incentives and rising costs.
The Decline of Combustion Engines
Sales of traditional combustion-only vehicles have continued to fall, with YTD volumes down to 446,992 units from 545,705 last year, bringing their market share to 39.6%, a significant drop from 48.2% YoY. Diesel vehicles are particularly affected, with sales down to 87,728 units YTD, a decrease from 116,607 last year. This trend points toward a future where diesel vehicles may hold less than 2.5% market share within four years, and potentially just 1% in seven years, assuming the current trajectory continues.
ЕV Market Ahead
While France’s EV market is currently in the slow lane, the decline in diesel and combustion-only vehicles indicates that the transition to greener alternatives is still underway. The challenge will be to navigate the economic and regulatory landscape to support a robust EV market. Whether this involves rethinking incentive structures or addressing trade policies, it will be crucial for France to maintain momentum in the shift toward electric mobility.
