Inflation rekindled and growth weakened Economic Outlook - march 2026

 

Conjoncture in France
Paru le :Paru le27/03/2026
Jérémy Polin
Conjoncture in France- March 2026
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Focus - In the automotive industry, the ramping up of electric vehicle production at French sites is improving the foreign trade balance

Jérémy Polin

Over the past 20 years, the number of passenger cars assembled in France has slumped by more than half. Passenger car production has hovered around the symbolic one million mark since 2020, compared with an annual average of 1.7 million between 2015 and 2019. Although production volumes have remained relatively stable since 2020, there have been structural changes in production. In particular, the proportion of vehicles fitted with fully or partially electric powertrains has risen significantly. In 2021, 40% of vehicles produced had electric powertrains, but by 2025, this figure had risen to over 50%. In addition, electrification has gradually spread to other segments: although confined to city cars in 2021, it now includes family models. However, the sharp rise in electric vehicle production in France since 2021 has not been sufficient to meet domestic demand. In 2025, the number of new electric private passenger cars registered in France was 1.5 times higher than the number produced. This difference between “production” and “consumption” is offset by imports, mainly from Germany and, to a lesser extent, from China. However, electric passenger cars produced in France are not intended solely for the French market. Six out of every ten electric cars assembled in France are exported, mainly to Europe and in particular to the United Kingdom. Furthermore, 2025 saw a promising turnaround: after deteriorating significantly in 2023–2024, the trade balance for electric vehicles has picked up markedly, driven by the ramp-up in production of several models assembled at sites across France...

Conjoncture in France

Paru le :27/03/2026