French car sales have plummeted to new lows, as they fell for the 10th month of the row. The car sales for French car in France fell by 10 percent during the month of May. This is the 10th month on the trot that car sales within France have failed to register any significant gain.
The spring season is supposed to be good for the sales of new cars, but this year, we haven’t seen any such trends. The year 2022 hasn’t been good for car sales in the nation of France, as car sales have only been going down.
The semiconductor shortage across the world has led to slow deliveries in the country. The market for French cars has fallen down by over 16.92 percent during the year alone. Additionally light commercial vehicles have seen a fall of 25 percent, which is unprecedented. No other year saw such depleting levels of financial activity, besides 2020, which was marred by the onset of the COVID-19 pandemic.
The falling sales can be accredited to rising costs of living, with many people shying away from luxuries. Automobile manufacturers also predict that consumers are waiting for better options in the hybrid market to invest in them.
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French car maker and renowned global automotive brand Renault mentioned that it is looking to combine manufacturing plants for possible cost savings. In a statement released recently, the car manufacturer showed interest in combining three electric car manufacturing plants in Northern France to form a conglomerate, which will save production costs and churn out more than 400,000 auto vehicles each year by 2025.
Renault also mentioned that the single electric vehicle plant, which will be called Renault ElectriCity would help create 700 new jobs across the three plants, which already employ 5,000 people when combined.
The company is facing a stiff challenge in the electric car market, with rival Volkswagen catching up in the market. Changes such as these “will contribute to reaching the necessary competitiveness to produce B segment cars in France“, the plant manager said, referring to smaller passenger vehicles, which are popular in France.
Renault, which has been operating under a loss recently, is looking to not only slash costs but also reduce its workforce under new CEO De Meo. The car manufacturer is looking to shift attention towards the electric car market and open new revenue streams and cost savings here.
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New car registrations in France for the month of March 2021 reported an almost 200 percent increase as the figures were hit by the pandemic during the corresponding months last year.
France’s CCFA association of carmakers released a statement prompting the press that car registrations were marked at 182,775 for the last month. This figure is lower than the average of 210,000 cars usually registered in March, but was many times more than what was seen last year.
Overall, the French car market saw a 21.1% increase in registrations for this quarter, a massive improvement from the first quarter of 2020.
Last year in March, French Car Manufacturers PSA reported that their car registrations fell by a massive 73.43%. This is a record fall and is a severe shock to embittered manufacturers.
PSA is responsible for making cars for the Peugeot and Citroen brands. Additionally, Renault also reported a 71.6 percent drop in their registered vehicles. This total drop will harm the economy as consumers have literally altered their spending patterns.
Whether the world ever comes out of the COVID-19 pandemic is yet to be seen, but what we do know is that the French Car industry is on its way to revival.
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The French car market is still rallying from the impact of the COVID-19 pandemic and the economic impact that has resulted because of it. The market demand has still not gone to pre-COVID levels as car sales for the month of February in 2021 were still over 20 percent short than what they were during the same period last year.
With 132,637 registrations, against an average of 160,000 in recent years, the drop in the number of orders is significant.
With 132,637 registrations against an average of 160,000 in recent years, “the drop in orders in the second half of 2020 is being felt as well as the start of the semiconductor shortage for the automotive sector,” indicated the committee of the constructors (CCFA). New car sales in France fell 20.95% year on year in February, the CCFA said in a statement.
«The French keep their savings and postpone their heavy purchases» Explained François Roudier of the CCFA.
As several groups have also announced, “we expect a rather bad first quarter, a not very good first semester, and a re-launch in the second semester”, emphasized François Roudier.
The drop is spectacular for the sale of second hand vehicles with a drop of 42% (31,637 registrations). “This is explained in particular by the current tension that exists in the networks of professionals on recent used vehicles” emphasizes AAA Data.
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While the COVID-19 pandemic is far from over, France might just have witnessed a return to normalcy as far as the car market is concerned. Car sales in the country plummeted to a new low in April, as the country witnessed an 88 percent drop in demand.
An automobile study carried out by La Plateforme reveals that sales in the auto industry of France for June are just at par with the sales during June of last year. The monthly figures were published by La Plateforme and its Director General Marc Mortureux during the month of July.
“We remain cautious because the last days of the month are very important, but there are clear signs of a restart,” Mortureux said in an interview. “After catastrophic months of March, April and May, the month of June is shaping up to be near normal at last year’s level, which was in itself relatively high.”
While orders are almost near normal, the Director General believes that the current French car industry production levels are still at 60 percent of what they were before the crisis. Still a 50 percent increase from the 40 percent they were at during the last month.
YouTube Link: https://www.youtube.com/watch?v=bRq6IA0Cno8
Car sales in the French market have come to a screeching halt as the country reels from the impact of the Coronavirus lockdown. March saw a steep contraction of 72 percent, but the downfall for April has been even more severe. All businesses deemed non-essential, including auto dealers, have been closed since March 17th.
Only 20,000 units were sold during the month of April, out of which 17,000 were sold by the two biggest automaker models in France, PSA and Renault.
“There were some deliveries, some car registrations, especially by Renault and PSA, for medical staff, government workers and individuals who had ordered and already paid for their cars,” Francois Roudier, spokesman for the CCFA, told AFP.
Looking ahead, “it will be the recovery plan that determines the state of the market over the year,” Roudier said. “There are a lot of unknowns.”
The unknown factors in the market include speculations over when the lockdown will be lifted and by when we can expect a full fledged return back to normalcy. Until then, consumers and buyers would have to live and bear with the reduced sales and market growth in the automotive sector.
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