The French car market has once again shown its fragility at the start of 2026. According to AAA Data, 153,842 passenger cars were registered in March, a fall of around 1.5% compared with March 2025.This decline is less severe than in February (-14.7%), but it confirms an underlying trend: the market remains under pressure. Against this backdrop, however, one segment continues to grow significantly: electric vehicles.
A market struggling to regain its momentum
With nearly 154,000 new registrations, March 2026 managed to limit the damage, though it did not mark a genuine recovery. For the first quarter as a whole, the market recorded around 414,000 passenger cars, down by approximately 8% compared with 2025.
To be more specific, the use of internal combustion engines continues to decline:
- diesel's market share has fallen below 3%,
- petrol prices are falling sharply,
- whilst hybrids now dominate the mix… without managing to sustain overall volumes.
The conclusion is clear: the energy transition is making progress, but it has not yet offset the market downturn.
The electric vehicle sector is maintaining its momentum but remains dependent on the economic climate
Indeed, in this market, it is electric vehicles that, as in previous months, continue to perform well. In March, they accounted for around 27% of new registrations, representing just over 40,000 electric vehicles for the month.
Looking at the first quarter, the trend is even more pronounced, with over 100,000 EVs already registered – an increase of around 20% – representing a market share of nearly 25%.
A clear upward trend, which, as we know, is driven by factors that are now well established, such as social leasing deliveries, increased government subsidies and regulatory constraints on vehicle fleets.
But of course, nothing lasts forever (normally)… Behind these positive figures, there is a caveat: some of this growth is cyclical, so the peak observed since January may not last as certain measures lose momentum.
There is no shortage of opportunities
We don’t talk about it often enough, yet this trend isn’t limited to the new-car market. It’s also becoming increasingly evident in the used-car market.
In March 2026, 476,979 used car sales were recorded, an increase of 2% year-on-year. In the first quarter, the market totalled 1,330,132 sales, a slight decrease of 2%.
But here too, the market landscape is changing rapidly. Electrified powertrains are growing rapidly:
- Sales of second-hand electric cars have surged by 47%, reaching a 4% market share,
- mild hybrids (MHEVs) are up by 35% (5% market share),
- Plug-in hybrids (HEVs) have seen a 27% increase (6% market share).
Conversely, internal combustion engines are on the decline:
- Diesel has fallen by 4%, but remains dominant with a 42% market share,
- petrol prices have fallen by 2% to 38%.
Fleets: the quiet but vital driving force behind the transition
Behind these developments, one key player stands out: corporate fleets. As they are more responsive to public policy than private individuals, companies are quick to adapt their choice of powertrain. For them, a car primarily serves an immediate operational need, which severely limits the scope for postponing purchasing decisions.
In this context, current regulations, particularly greening requirements, have a direct and significant impact. They automatically steer vehicle replacements towards electrified powertrains, and are likely to continue doing so in the short and medium term.
But their role is not limited to the new car market. By regularly renewing their vehicles, fleets supply the used car market with a huge number of recent models. As a result, they have become a key driver in the uptake of electric vehicles by households, enabling a more gradual yet broader transition across the entire vehicle fleet.
A trend to watch over the coming months
The start of 2026 thus highlights a two-tier market. Whilst the overall market is in decline, the electric vehicle segment is growing strongly.
As always, the question remains: is this trend sustainable? With the gradual phasing out of social leasing, a challenging economic climate and prices that remain high, the coming months will be decisive. One thing is certain: whilst electric vehicles are gaining ground, they are still doing so in a market that is still struggling to find its footing.
