BEVs provide return to growth in the French new-car market

13 April 2026

After a difficult start to the year, the French new-car market returned to growth in spectacular fashion during March. Soaring battery-electric vehicle (BEV) volumes made this possible, but why did the technology see a significant increase? Tom Hooker, Autovista24 journalist, explores the figures.

The new-car market in France returned to growth in March, marking the country’s first improvement since October 2025. According to the PFA, 173,634 units were registered in the month, an increase of 12.9% year on year. In part, the rise was boosted by an extra working day compared to March 2025.

New-car purchases from individuals represented 46% of total volumes last month, with a 22% delivery increase, according to AAA Data. Within this sales channel, long-term leasing rose sharply. Deliveries to fleets suffered a 2% decline during March, while registrations associated with short-term rental companies climbed 19%.

Despite this double-digit growth, the French new-car market recorded a 2.1% decline in the first quarter of 2026. According to AAA Data, 401,556 deliveries took place during this period, a loss of 8,528 units year on year.

Similar to many major European new-car markets, the powertrain mix continues to shift towards electrification in France. BEV deliveries have soared, while hybrids are seeing more marginal year-on-year gains. But unlike the other big five markets, plug-in hybrid (PHEV) volumes have remained stagnant. This comes as both petrol and diesel registrations fell significantly.

BEV growth provides lifeline

BEV registrations soared 68.8% in March to 49,406 units, according to Autovista24 analysis. This growth provided a lifeline for the French new-car market. Without it, overall registrations would have fallen by 0.3% year on year.

The figure presented the powertrain with a 28.5% share of overall new-car volumes, up 9.5 percentage points (pp) year on year. This was the largest market share of any in Europe’s big five automotive markets, reflecting a wider first-quarter trend.

Behind the technology’s surging sales, many factors are having a positive impact on delivery volumes.

‘France’s strong increase in BEV registrations during March was mainly driven by the social leasing scheme. While the program reopened in late 2025, people who registered for the scheme are now taking delivery of their cars,’ outlined Ludovic Percier, senior residual value analyst for France.

The scheme allows lower-income households to access BEVs through long-term rental contracts. These are provided at significantly reduced monthly costs, supported by the state. Monthly rental costs cannot exceed €200 excluding options, accessories and services. Some offers reach less than €140 per month.

Factors assisting BEV demand

‘Other short and long-term factors have assisted demand. Since February 2025, BEVs have profited from a notable change to company-car taxation,’ Percier continued.

‘The technology faced a less severe increase in benefit-in-kind rates than any other powertrain. This makes them significantly more favourable compared to internal-combustion engine (ICE) vehicles, strengthening their appeal in the fleet market.

‘Furthermore, rising fuel prices have improved the comparative total cost of ownership of BEVs since March. However, this effect is minimal and is more linked to the used-car market,’ he commented.

AAA Data also pointed towards the country’s purchase and leasing incentives as a factor that has helped boost BEV volumes.

Known as the ‘electric passenger vehicle boost’, the subsidy provides funds of between €3,500 and €5,700 when buying an electric vehicle (EV). Additional bonuses are available for vehicles where the battery is manufactured in Europe.

At the start of 2026, the French government also raised the income ceilings defining the categories of modest households. This move means more families are eligible for higher grant levels. The industry body also noted that discounts offered by some manufacturers are helping BEV demand.

From January to March, BEVs took a 27.9% share of overall new-car registrations. This was up from 18.2% during the same period of 2025. The technology enjoyed a 50.4% delivery increase to 112,083 units, according to AAA Data.

Stagnant PHEVs

Conversely, PHEVs faced a 2.2% delivery decline in March to 8,108 units, according to Autovista24 analysis. The powertrain took a 4.7% market share last month, down by 0.7pp year on year.

PHEV volumes during the first quarter of 2026 were stagnant. Just eight fewer registrations were recorded compared to the same period last year, according to AAA Data. A total of 19,584 units ensured a 4.9% share, up 0.1pp.

Combining BEV and PHEV figures, the EV market in France had a positive start to the year. Volumes improved by 53.2% in March, with its share increasing by 8.7pp to 33.1%. A 39.9% year-on-year improvement was seen in the first quarter, with 131,667 registrations. This equated to a 32.8% share, up from 22.9%.

No growth in sight for ICE

Internal-combustion engines, including petrol and diesel-powered models, had a weak March, suffering a 25.4% slump in deliveries year on year. According to Autovista24 analysis, the powertrain group accounted for 16.9% of new-car volumes in the month, down 8.7pp.

Diesel performed particularly poorly, with a 31.2% drop to 4,448 units. This translated to a 2.6% market share, down from 4.2%.

This made it the least popular powertrain in the new-car market, behind even the ‘others’ category. This powertrain group includes liquefied petroleum gas models, natural gas vehicles and super-ethanol cars.

Petrol endured a 24.2% drop in March to 24,908 registrations. The fuel type made up 14.3% of overall volumes, down 7.1pp year on year. This means its market share was roughly half that of BEVs. In March 2025, petrol was ahead of the all-electric technology by 2.4pp.

From January to March, deliveries of ICE-powered cars fell by 41%. The powertrain grouping recorded 68,507 registrations, with its hold on the market loosening from 28.3% to 17.1%.

Broken down, diesel deliveries declined by 44.5% year on year, according to Autovista24 analysis. Its 10,067-unit total translated to a 2.5% market share, down 1.9pp. Meanwhile, petrol posted a 40.3% slump to 58,440 registrations. The fuel type represented 14.6% of total new-car volumes, down from 23.9%.

The shares of both petrol and diesel models were the lowest among the major EU markets in the first quarter. This may be a factor in France’s decline across the three-month period.

Hybrid’s double-digit growth

Hybrids, including full and mild versions, enjoyed a double-digit delivery improvement in March. The powertrain posted 80,709 registrations in the month, increasing by 14.2% year on year. This enabled a dominant 46.5% market share, up 0.6pp, according to Autovista24 analysis.

Hybrids accounted for 47.3% of the new-car market in the first quarter, an increase of 2.4pp from the same period in 2025. However, its growth was more marginal, up 3.1% to 189,904 units, according to AAA Data.

Adding hybrids to the EV total, the electrified market recorded strong results in both March and the first quarter. Deliveries grew by 27.7% last month, as the powertrain group’s share rose from 70.3% to 79.6%. In the first quarter, volumes increased by 15.5%, while the group’s share sat at 80.1%, up 12.2pp year on year.

The ‘others’ category did not enjoy the same success as electrified models. The powertrain group suffered a 3.7% drop in volumes to 6,054 units in March, according to Autovista24 analysis. Its share subsequently fell from 4.1% to 3.5%.

Its first quarter result was more severe, as volumes slumped by 26.6% to 11,478 units. The category captured 2.9% of the new-car market in this period, down 0.9pp year on year.