Automotive: 2022, another gloomy year for the French market

The improvement of the past few months has not been enough to make up for the difficulties of the year. According to data released this Sunday by the Automotive Platform (PFA), representing manufacturers and equipment manufacturers, the French car market has fallen by 7.8% in 2022. In total, 1,529,035 new passenger cars were introduced last year, up from 1,659,003 in 2021, compared to 2.2 million in 2019, before the Covid-19 pandemic.

After a disastrous 2020 with closed dealerships and a sluggish economy, the sector did not bounce back in 2021, with a relapse in 2022 despite four months of growth in the second half of the year both in the new home market and on occasion.

Crises “add up”

“Structurally, we are in a market that has fallen by a third since 2019 due to a series of crises,” François Roudier, head of PFA communications, told AFP. These crises are “adding up,” he explained, listing “the problem of the availability of electronic components, the difficulties of delivering cars due to a lack of drivers, exacerbated by the war in Ukraine, the rise in the cost of too expensive materials and fuel.”

“In the face of falling volumes, large equipment manufacturers who have the opportunity to invest have bet on maximum capacity and electricity,” betting on a consumer sensitive to a sharp increase in fuel prices at a gas station. and government assistance for the purchase of cars with low greenhouse gas emissions, emphasized François Roudier.

Diesel engines make up less than 16% of registrations in 2022, down more than 5 points from the previous year. Gasoline remains the most popular category of new car buyers with 37% of the market. The share of electric vehicles continues to grow, reaching 13% of total registrations in 2022, compared to 10% last year and just 1% four years earlier.

All-electric vehicles crossed the 200,000 mark, up 25% from the previous year, while plug-in hybrids fell by about 10% to 126,549 units, according to PFA data. This decline in the number of hybrids is partly due to a reduction in corporate purchases.

Opportunity is also in trouble

“The crisis has affected all manufacturers who are less updating their fleet, which also affects the used car market, which is unable to meet demand,” said Francois Roudier. This market, which began to grow in 2021, is experiencing a sharp decline (-13%) from 5.26 million units, the lowest level since 2009, according to preliminary data from NGC Data published by Argus.

The podium does not change over the year: Stellantis, the result of the merger of PSA (Peugeot, Citroën, DS and Opel) and FCA (Fiat, Jeep, Alfa Romeo, etc.), remains in first place in the 2022 overall standings with 31%. of the passenger car market, despite a 14.7% year-on-year decline in registrations.

Its competitor, the Renault Group, fared better, with a 24% market share and a 6.6% drop in vehicle sales compared to 2021. Registrations for the Romanian brand Dacia continued to rise (+4.5%), while Renault registrations fell sharply. by 12%.

Peugeot (Stellantis), which outperformed the diamond brand last year, maintains its lead with a 16% market share compared to Renault’s 15.5%. The first foreign group, Volkswagen, saw a slight decrease in registrations in 2022, but the market share of the German giant remained unchanged at almost 13%. The favorite cars of the French in 2022 are the Dacia Sandero, Peugeot 208 and Renault Clio, says AAAData in a press release.

2023 is sure to be a “busy year in the new car market” in an ongoing crisis context, the firm said, noting “a fall in new car orders in 2022, which will be reflected in sales levels this year.”