Price of new cars in France dropped for first time in five years in 2025

The price of purchasing a new car in France fell for the first time in five years in 2025, new data reveals. 

Smaller vehicles, adaptive price policies, and a turn away from more expensive and heavier hybrid vehicles – that also now face weight taxes despite their eco credentials – were among the main reasons for the price drop, said the Institut Mobilités en transition and C-Ways who organised the data. 

A global economic downturn caused by the conflict in the Middle East, alongside rising prices due to material shortages, are set to see this trend reversed in 2026 however.

‘Unprecedented’ price increases

Between 2019 to 2024, the average price for a new vehicle rose from €26,900 to €35,200, an ‘unprecedented’ increase of 31% according to the groups.

In 2025, this dropped slightly to €34,600, meaning a 29% increase across the six years.

This price increase far exceeded inflation over the same period (up 19%), and increases in standard of living (up 23%), with cars making up a much higher portion of total household expenditure than before. 

Sales since 2019 have dropped by around 26% in France, from 2.2 million to 1.6 million per year. 

Households are at the forefront of this drop, with purchases dropping by 27% – significantly sharper than the 14% seen across the EU. 

Those with the most modest incomes have unsurprisingly been hit hardest.

Before, the 40% of households with the lowest disposable income made up around 25% of France’s car sales, but in 2025 accounted for only 15% of the market.

Which cars cost the most? 

Prices and price changes varied considerably between vehicle types. 

The average price increase was 29% for petrol vehicles, 18% for diesels, 4% for non-plug-in hybrids, 1% for plug-in hybrids, and 7% for electric vehicles.

Despite seeing only a small price increase, plug-in hybrids were significantly more expensive than other models, costing €56,700 on average.

In comparison an electric vehicle cost €39,000, a diesel €38,800, non-plug-in hybrids €36,400, and €29,100 for petrol vehicles.

While electric vehicles saw prices fall by around 4% in 2024/2025, petrol vehicles increased by roughly the same amount. 

Prices set to increase?

Market trends point towards a strong increase in electric vehicle sales in 2026.

Even these however are at risk of price fluctuations. 

Raw material output for certain metals used in car production (nickel and cobalt) as well as materials used in electric car batteries (such as lithium) remain below pre-2020 levels, impacting supply chains. 

The increasing technologicalisation of cars through smart dashboards, sensors, etc, means companies also need to source semi-conductors, another expensive material.

More widely, vehicles for the European market face increased costs due to EU regulations, which require additional (and expensive to install) safety features. 

Generally, manufacturers are beginning to focus on the most profitable models such as SUVs and electric vehicles, leaving compact city cars that traditionally dominated the European market behind.