In May 2022, new car registrations reached 126,819 compared to 141,053 in May 2021, a decrease of 10.1%. Against all odds, the electric continues to grow and does not know the crisis.
We no longer know what apocalyptic qualifier to use to describe the state of the French automobile market. But to sum it up, it’s (still) hell. Once again, the sector continued its inexorable fall, for the twelfth consecutive month.
In May 2022 (21 working days), registrations of new passenger cars stood at 126,819, i.e. a drop of 10.1% compared to 140,040 in May 2021 (19 working days). By way of comparison, in May 2019 (20 working days), the pre-Covid reference year, there were 193,948.
Thus, since the start of 2022, registrations of new passenger cars have reached 600,934, i.e. a drop of 17% compared to the same period in 2021. The decline is even 36% compared to May 2019, when there were 935,478 registrations.
According to NGC-Data analysts, the causes are almost identical from month to month. In addition to the Covid crisis, which has seriously weighed down the market for the past two years, there has been added the shortage of semi-conductors still in progress, the “rise in raw materials, rising energy prices, production difficulties and economic uncertainties of all kinds“. Thus, the war in Ukraine which promises to be still long, inflation (+5.2%) which continues to climb and the electoral context do not encourage French households to consider the purchase of a vehicle as a priority.
French manufacturers picking up, Kia and Hyundai in the firmament
Once again, the French manufacturers were not at the party in this beautiful month of May 2022. Thus, Peugeot and Citroën respectively suffered a decline of 8.3% and 30% in sales, i.e. a drop of 26 % and 24% over the first five months of 2022.
Within the Stellantis group, Alfa-Romeo is also in bad shape: -40%. Only DS Automobiles, Opel, Fiat and Jeep are in the green.
As for Renault, it recorded a drop of 12.15%, while Dacia posted an increase of 4.2%, as did Alpine (+164.38%). For the group as a whole, the drop was 7.48%.
Another tumble, that of the Volkswagen brands, with a general drop of 29.35%: Volkswagen lost big (-32%) as well as Seat (-59%). And this despite the excellent sales of the Cupra Born (2606 units over five months), the sister brand of the Iberian, which fail to limit the breakage. The premium Porsche (-49.41%) and Audi (-17%) unfortunately do not escape the ambient gloom.
However, Germany saves the honor with BMW (+5.18%) and Mercedes (+7.52%).
Among the victims of the tumble of this month of May 2022, we will mention Volvo Car (-62.36%), Jaguar-Land Rover (-57%), Toyota (-6.18%), Lexus (-36.57 %), Suzuki (-23.91%), MG (-17%) and Tesla (-92.80%).
The good surprise comes from the Korean duo Hyundai-Kia: +30.15% and +15.11%. Thus, the first of the cousins is a hit with 4,714 registrations in May 2022, or 19,522 since January 2022. Hyundai allows itself to outdo the German premiums like Audi, BMW and Mercedes.
In addition to Hyundai-Kia, let’s not forget Mitsubishi, which seems to be finding a second youth (+256.96%). (Source PFA / AAA Data)
Energy: electric on the verge of taking the lead ahead of the petrol-diesel mix
In terms of energy, gasoline and diesel continue their debacle: -22% for a market share of 36% for the first and -28% with a market share of 18% for the second. Which makes analysts from NGC-Data (provider of monthly figures) say that “diesel and gasoline could no longer be the majority in the energy mix from June 2022, if current trends are confirmed in the coming weeks“.
Inevitably, the big winner is electric vehicles, with an increase of +32% and a market share of 12%. Identical situation for hybrids (+12%) and plug-in hybrids (+8%).
Opportunity is in crisis
Finally, a word on the second-hand market, which continues to bear the brunt of the crisis for the 6th month in a row. 2,297,388 used vehicles were sold in the first five months of 2022, compared to 2,561,680 in 2021 (-10%) and 2,414,346 in 2019 (-5%).
Last month, we wrote that the catastrophic situation of the automobile market should not change before 2023-2024. According to our colleagues from The Automobilistgiven the figures for the first five months, the automotive market for new cars is expected to fall below the mark of 1.45 million units sold by the end of 2022.
The latter even think that this projection, a bit optimistic, will have to be revised downwards. The cause ? A “generalized inflation, the decline in household purchasing power, but also a real drop in consumption and French morale“. (Source The Automobilist)