Source: AAA DATA Linkedin Account
The French automotive market is in good shape, with new passenger vehicles (NPV) registrations up 22% in April 2023. However, rising interest rates are affecting vehicle financing solutions, and the electric car market is witnessing a preference for the most autonomous models among large city residents. Meanwhile, the used car market is slowly recovering, particularly around the oldest models.
New Passenger Vehicles Registrations
According to AAA DATA, registrations amounted to 132,509 units in April 2023, a 22% increase compared to the previous year. Marie-Laure Nivot, Head of Market Intelligence at AAA DATA, attributes the current market optimism to replenished order backlogs and stockpiling of incomplete vehicles.
Financing Solutions
The recent increase in interest rates has affected vehicle financing solutions, with leasing solutions accounting for 51% of new passenger cars in April 2023, compared to 49% for buyers. Manufacturers like Stellantis have extended the duration of their long-term rental and lease-to-own contracts to maintain affordable monthly rates for customers.
Electrified Vehicles
Electrified vehicles (electric and hybrid) continue to gain momentum, with electric model registrations rising by 35% to 17,112 units and hybrids gaining 22%. Alternative fuel vehicles (petrol + LPG) also experienced significant growth with a 111% increase in registrations.
Top 5 New Private Electric Vehicles (April 2023)
- DACIA (2,432 registrations)
- PEUGEOT (2,322 registrations)
- RENAULT (2,125 registrations)
- TESLA (1,824 registrations)
- FIAT (1,365 registrations)
To better understand these numbers, it’s essential to consider their relation to the first quarter (Q1) figures of the auto market. Typically, the first quarter of the year experiences a gradual increase in automotive sales, as consumers recover from the holiday season and become more inclined to make new purchases.
The strong performance of these top five brands in April 2023 showcases the growing consumer interest in electric vehicles within the French market. These April figures indicate an upward trend, suggesting that the sales momentum from Q1 has carried over into the second quarter.
DACIA, leading the pack with 2,432 registrations, highlights the popularity of affordable electric vehicles, such as the Dacia Spring, among French consumers. The other top brands, PEUGEOT, RENAULT, TESLA, and FIAT, also contribute to the expanding electric vehicle market, offering various models that cater to different customer preferences and needs.
In summary, the April 2023 electric vehicle registration figures, when viewed in relation to the Q1 performance, showcase the continued growth of the electric vehicle market in France. The top five brands demonstrate the increasing demand for eco-friendly transportation options and hint at the potential for even stronger sales figures as the year progresses.
Used Vehicles Market
The used car market witnessed a smaller decline than in previous months, with 420,067 registrations, a drop of 3.2%. However, the oldest models, over 10 years old, have almost stabilized with 201,250 units.
Buyer Profile for the Most Autonomous Electric Vehicles
Electric vehicle range is a major concern for buyers and is linked to the vehicle’s price. In the first quarter of 2023, 80% of electric car registrations were concentrated in segments B, B-SUV, C-SUV, and C. Surprisingly, large city residents favored the most autonomous vehicles, with Parisians opting for models with a median range of 430km, while Marseille-Aix en Provence and Lyon residents chose vehicles with a range of 395km and 386km, respectively. Small town and rural area buyers selected electric cars with a lower range of 362km.
