French worker can no longer afford the car he no longer builds

In 2025, new car registrations in France are expected to drop 5% from 2024, with nine out of ten French people finding vehicles too expensive. The average price rose 24% from 2020 to 2024, from €28,107 to €34,872, per the Institut Mobilités en transition.

Jean-Pierre Robin's chronicle highlights a crisis in the French automotive sector. The 2026 barometer from the Cetelem observatory, surveying 15,774 motorists across Europe including 3,144 in France, shows 90% of French people deem new cars unaffordable. This is no mere perception: data from the independent Institut Mobilités en transition (IMT) confirm a 24% rise in the average new vehicle price from 2020 to 2024.

This surge stems from multiple factors piling up since the Covid-19 pandemic. Factory shutdowns in 2020 led to a global chip shortage, critical for the auto industry. The Ukraine war drove up raw material costs, as manufacturers shifted to higher-end models to boost margins. Accelerated vehicle electrification has also played a role.

Robin wryly notes that the French worker, once the builder of these machines, can no longer afford one—nor possess the skills to make it. This points to a 2025 marked by ongoing sales decline, underscoring the economic and social challenges in the sector.

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A crowded French gas station with long lines of cars and a prominent fuel price sign showing record highs due to the Middle East crisis.
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Fuel prices hit new high in France amid Middle East crisis

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Gasoline prices reached their highest level since the start of the Middle East conflict on Wednesday, May 6. The average price of super unleaded 95 stood at 2.03 euros per liter. The increase stems from the war and the paralysis of the Strait of Hormuz.

A Roland Berger study commissioned by PFA, Mobilians, Sesam and Avere highlights the impact of European standards and French taxation on the car sector. The average price of a new car rose 34 % between 2019 and 2025, while sales fell 27 %.

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Vehicle manufacturers in Spain allocated 3,197 million euros to investments in 2025, up 24.7% from the previous year, according to ANFAC's annual report.

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