French Car Sales Off in May, But Market Gaining Momentum

New-car deliveries through the first five months were down 11.9% in France from prior-year, and no one is celebrating the continued decline, but the hemorrhaging appears to be slowing for most auto makers.

PSA Peugeot Citroen, the market's leading group, saw sales fall 8.2% in May compared with year-ago’s 15.4% drop. Volkswagen, Ford and BMW also suffered declines that were less than their like-2012 losses. Nissan, Fiat and Mercedes all enjoyed gains in May, although they remained behind their year-to-date pace.

Toyota was the exception, with deliveries rising 10.2% in May and up 4.1% for the year.

Hyundai and Renault groups both lost their position during the month. Renault, No.2 in France, saw sales tumble 16.5%, dragging its 5-month result to a 9.2% decline. Hyundai-Kia fell 5.8%, in May, but was up 8.5% year-to-date.

Renault blames its loss last month on temporary production constraints because of the European launch of the Captur and the restriction of sales rental fleets of the new Clio and Dacia Sandero. The Sandero was the No.1 new car sold to individual buyers in May and the Clio was the leader overall.

General Motors’ deliveries plunged 25.5% in May, but results still were up 23.4% for the year.

May is a holiday month in France. Although there were 19 working days this year, several fell in the middle of the week and many people took, or were ordered by employers to take, the extra days off for long weekends. In addition, spring school holidays fell in May this year, so sales probably were better than they appeared.

France has seen its best car sales in June in recent years, so deliveries almost are certain to climb above May this year. If June sales do improve the annual picture for a third straight month, the industry may start feeling positive about approaching the mild 0.5% decline for the year that was widely predicted in January.

Through the first five months, the A- and B-segments picked up two points of market share and now account for 52% of the market, according to the French auto makers’ association CCFA. The C-segment lost a point to 31%, the D-segment was unchanged at 13% and the premium segments were up a combined 4%.

Sedans and hatchbacks held 58% of the market through May, up one point, while SUVs and cross/utility vehicles captured 16%, also up one point. The losing body styles were compact minivans, coupes, cabriolets and station wagons.