The French auto market experienced a 13-month consecutive decline in the first half of 2025, with June sales plummeting to their lowest point in 28 years for the same period. While Internal Combustion Engine (ICE) models saw a steep decline, hybrid models continued to expand their market share.

Amidst the overall market downturn, Renault Group reclaimed the top sales position, accelerating the transition towards electrification. Subtly evolving, the brand landscape reveals Chinese brands gradually gaining ground in the French market. Despite their modest overall share, some Chinese brands have demonstrated growth potential in specific segments.

This article delves into the sales structure of the French market in the first half of the year and the performance of Chinese brands, highlighting key trends and changes.

01

French Auto Market Structure: Hybrid Surge and ICE Decline

In June 2025, the French passenger car market fell 6.7% year-on-year, with total sales of 169,504 units. This marked the 13th consecutive monthly decline since June 2024 and the lowest June sales since 1997. Cumulative sales for the first half of the year stood at 842,203 units, down 7.9% year-on-year.

From a powertrain perspective, the French market is accelerating its shift towards electrification:

◎ Traditional gasoline vehicles witnessed a significant year-on-year decrease of 30.7% in June sales, totaling 37,747 units, with their market share shrinking to 22.3%.

◎ Diesel vehicles plummeted 40%, leaving only 9,738 units sold, and their share dropped to 5.7%.

◎ Hybrid models, however, bucked the trend with a 19.5% increase, accounting for 43.9% of the market—close to half—and emerging as the market mainstay.

◎ Plug-in hybrid vehicles, despite a year-on-year decline of 16.1%, still maintained a 7% market share.

◎ Pure electric vehicle sales declined slightly by 2.4% to 29,139 units, accounting for 17.2% of the market, a slight increase from 16.4% in the same period last year.

Collectively, the combined share of hybrid and pure electric vehicles surpassed 60%, signifying a significant shift towards electric vehicles among French consumers.

In terms of brand structure:

◎ Renault led the French market with sales of 32,700 units in June and 152,846 units for the year.

◎ Peugeot ranked second with sales of 21,710 units in June and 123,636 units for the year, accounting for 14.7% of the market.

◎ Dacia stood out with June sales of 16,451 units, a 27.3% year-on-year increase driven by cost-effective models. Its cumulative sales for the year reached 76,593 units, accounting for 9.1% of the market—Dacia's best performance since August 2023.

◎ Volkswagen, Citroen, and Toyota followed, but all experienced double-digit declines. Notably, Volkswagen fell 17.6% in June, with cumulative sales for the year down 4.3%.

◎ Among German luxury brands, BMW sales fell 12.8% year-on-year in the first half, Audi declined 5.7%, and Mercedes-Benz slid by over 20%.

In terms of models:

◎ Renault Clio topped the sales chart with 13,630 units in June, a surge of 43.1% year-on-year, almost double the sales of the second-placed Dacia Sandero (6,952 units).

◎ Peugeot 208 ranked third with 6,478 units, but this was a 0.5% decline from the previous year.

◎ Notably, both the Dacia Duster and Bigster compact SUVs achieved strong growth, with the latter entering the top 20 for the first time, representing the brand's initial success in expanding into the mid-size SUV market.

◎ Among electric vehicles, Tesla Model Y's June sales jumped to tenth place, indicating a trend of recovery.

In the light commercial vehicle (LCV) market, cumulative sales for the first half of 2025 were 185,449 units, a decrease of 11.9% year-on-year, outpacing the decline in passenger cars.

◎ Renault remained dominant, but its share fell from 30.8% in the same period last year to 27.6%.

◎ Peugeot, on the other hand, bucked the trend with its share rising to 19.6%.

Renault Trafic was the best-selling model, while Peugeot Partner, Expert, and Toyota Hilux also ranked among the top sellers. Overall, the LCV market is transitioning from large-displacement diesel engines to versatile hybrid platforms.

02

Chinese Brands' Performance and Opportunities in France: Emerging Breakthroughs Despite Low Penetration

Despite the overall market contraction, Chinese brands have yet to enter the top ranks of mainstream sales in France, but they are beginning to make breakthroughs in electrification, intelligence, and niche markets.

From a brand perspective, MG sold approximately 2,150 units in June, accounting for a 1.3% market share. Although this was a 23.3% year-on-year decline, cumulative sales for the first half of 2025 reached 12,871 units, a 39% increase year-on-year.

Globally, MG has been positioned as the bridgehead for Chinese brands in the European market, and its performance in France aligns with this strategy.

In terms of product structure, MG relies primarily on pure electric models like the MG4, which offer attractive cost-performance ratios under the stringent energy consumption standards of the European Union.

Besides MG, BYD, Changan, and SAIC Motor, the parent company of MG, have also entered the French market through small-batch sales or partnerships.

For instance, XPeng Motors is conducting technology validation in France through pilot deployments of its XNGP autonomous driving system, while NIO has gained a foothold among high-net-worth customers through a combination of battery swapping networks and premium models. This "technology-led" approach may not scale up rapidly in the short term but lays the groundwork for Chinese brands to establish differentiated competitiveness in France.

From a model perspective, no Chinese brand currently ranks among the top 50 best-selling models. However, leveraging advantages in electrification, smart cabins, and cost-effectiveness, Chinese brands have begun testing the waters in urban car-sharing and personal second-car segments.

In the future, if they can continue to make breakthroughs in compliance, after-sales networks, and brand recognition, they may secure a larger share in the Battery Electric Vehicle (BEV) and small SUV segments.

Summary

In the first half of 2025, the French auto market underwent significant structural changes amidst the accelerated decline of traditional powertrains and the transition towards electrification. Renault Group reclaimed its market dominance, and hybrid models surged. Although Chinese brands still hold a modest overall market share, they are beginning to make local breakthroughs under the electrification trend, with brands like MG gradually establishing a presence through cost-effective electric models.