French new car registrations rose by 9% in July compared to the same month last year, totaling 126,808 vehicle sales, according to data released by the Plateforme automobile (PFA). Industry officials attribute the increase to a favorable comparison with July 2025, a period that recorded a historical low for the domestic market.
Electric Vehicles and the New Leasing Social Program
Battery electric vehicles accounted for 35% of total registrations in July, translating to 44,378 units, while hybrid models captured 48% of the market. According to the PFA, electric vehicles have claimed 29% of the market since the beginning of the year, representing a 70% increase over the same period in 2025. Market analysts note that this growth is driven by government purchase incentives, mandatory fleet electrification rules for corporate entities, and the arrival of subsidized leasing options.
The upward trend in electric vehicle sales coincides with the July 16 launch of the third iteration of France’s social leasing program, known as the leasing social. According to Marie-Laure Nivot, an automotive market analyst at AAA Data, the rollout of the new program and its competitive pressure on manufacturer pricing are accelerating the country’s transition to electric mobility. The scheme provides eligible low-income households with state-backed financing for electric vehicles produced in Europe, including the battery pack, with monthly lease payments capped at 200 euros or less.
Top-Selling Models and Chinese Market Growth
Renault dominated domestic sales in July. The Renault 5 led the market with 3,794 units registered, followed by the Renault Scenic V at 2,910 units, the Renault Twingo IV at 2,564 units, and the Tesla Model Y at 2,401 units, according to industry figures.
Meanwhile, Chinese automotive brands continued to expand their footprint in France. AAA Data figures show that Chinese manufacturers—including BYD, Xpeng, and Leapmotor—more than doubled their volumes year-on-year, capturing 8% of July registrations with 9,935 new vehicles sold. PFA representatives note that while legacy European automakers experience declining volumes, Chinese competitors continue to post substantial gains.
Broader Market Challenges and Manufacturer Performance
Despite the July rebound, the broader French new car market remains significantly below pre-pandemic levels. Sales volumes lag more than a quarter behind July 2019 figures, leading PFA officials to describe the sector as being in crisis. Total passenger car registrations for the first seven months of the year reached 983,974 units, a modest 2,65% increase over the corresponding period in 2025.
Looking ahead, the PFA warns that macroeconomic indicators remain unfavorable and uncertainty persists. A recent study conducted by the PFA alongside international consultancy Roland Berger identifies stricter European CO2 regulations paired with French taxation as primary drivers behind rising vehicle prices. Industry representatives state that these increased costs have priced a substantial portion of the middle class out of the new car market.
Performance among France’s largest domestic auto groups remained positive in July. Registrations for the Renault group climbed by 9,5%, bolstered by a 21,9% surge for the core Renault brand that offset a 10,9% drop for Dacia. Stellantis saw a 7,2% increase across its portfolio, driven by strong gains at Citroën up 17,3% and Fiat up 53,5%, alongside a 6,7% increase for Peugeot.
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