The car dealership market - France

The car dealership market encompasses all players who sell new or used vehicles, provide after-sales services (maintenance, repairs), and offer financing solutions such as long-term leasing (LLD) or leasing with an option to purchase (LOA). These dealers operate as official intermediaries for automakers, but their role is tending to evolve towards broader functions, integrating digitalization, consulting and mobility management. Between 2019 and 2024, the global automotive sector experienced high volatility, marked by a sharp drop in sales in 2020 due to the health crisis, followed by a gradual but uneven recovery. While global sales reached 82 million units in 2024, exceeding pre-COVID levels, France saw a slower return to normal, with 1.72 million passenger cars sold in 2024, still below 2019 volumes. This recovery remains marked by a profound transformation in consumer buying habits and expectations. The energy transition, in particular, is reshaping the market structure: by 2024, hybrid powertrains will dominate the new vehicle market with 42.8% share, while electric vehicles will grow to 16.9%, despite persistent obstacles related to cost, range and recharging infrastructure. At the same time, diesel continues to plummet, accounting for just 7.3% of the market. Sales channels are also changing. While physical dealerships remain in the majority (52% of sales), online platforms (38%) and classified ads (21%) are gaining ground, especially among the younger generation. This shift towards digital technology is accompanied by a boom in leasing, particularly in the business segment, due to its flexibility and budget control. Last but not least, the used car market is taking center stage, accounting for 75.8% of passenger car sales in 2024. Buyers give priority to price (77% of purchase criteria) and are massively oriented towards second-hand vehicles, most often via non-professional sellers (64% of transactions), to the detriment of dealerships, considered more expensive despite the associated warranties and services.

Against this backdrop, the role of dealers is set to evolve in the face of more cautious consumers, tighter regulatory constraints, and increased competition from digital platforms. The aim of this study is to provide a detailed analysis of the structure, dynamics and future prospects of the car dealership market in France.