French Car Sales Slide 9.0% in June, Down 11.3% for First Half

PARIS – New-car sales in France fell 9.0% in June, pushing the year’s first-half down 11.3% to 1.1 million units.

Daily sales dipped 4.4% in the month, says Patrick Blaine, president of the French auto makers’ group CCFA, but new orders are encouraging.

“In the month of June, the orders coming in seem to be stabilizing,” he says. ‘It was the same in May, so we are probably on the way to reaching the bottom." The CCFA sales outlook for the year of an 8% decline from year-ago remains unchanged, but auto makers “are comforted by the first estimations for orders in September and October.”

The launch of new cars, particularly the Renault Clio IV and the Peugeot 208, are beginning to have an effect on sales, finishing first and second, respectively, in the first six months.

To end the year down 8% after a double-digit first-half loss, French customers will need to buy 817,000 cars in the second half for a decline of about 4%, compared with like-2012.

Thanks to the Renault brand, which inched 0.4% in June, French auto makers gained some rare share against rivals. In June, the French makers held a 55.7% share of their home market, with their first-half share at 53.3%.

Renault sold 40,425 units in June, 145 more than a year earlier. However, the Dacia brand tumbled 20.2%, keeping the group in the red for the year.

Renault launched a major advertising campaign in the month, which dubbed in English is called the “French Touch.” In the TV spots, the actor Nicolas Carpentier, who previously starred in commercials for Renault in Germany, Italy and the U.K., talks about the auto maker’s new design and R-Link touchscreen, and urges consumers to set up a test drive.

PSA Peugeot Citroen deliveries tumbled 9.5% in June, with both brands performing close to the market. PSA was down 11.6% in the first half and Renault slid 8.1%, compared with year-ago.

Among the other volume brands, Fiat continued its revival, with sales up 7.8% in June, bringing the first six months down 1.9%, close to breakeven. Volkswagen was off 10.0% for the month and down 11.7% for the first half. Ford fell 9.5% and was down 22.6% for the year. General Motors plummeted 31.4% in June and was off 25.2% for the first half.

Among the Asian brands, Toyota was the only auto maker to see double gains, up 6.3% in June and 4.5% year to date. Nissan deliveries dropped 17.0% in June and were down 9.6% in the first half. Hyundai-Kia suffered a big decline for the second straight month, down 22.7% but up 1.6% for the first half.

With the economy in recession in France, cars in the A and B segments gained share in the first six months, to 52% from 49.5% year-ago.

Luxury cars dropped from a 5% share year-ago to 4%. Audi, with 29,722 sales, remained the segment’s leader in France by a solid margin, despite a 5.9% decline in the first six months.

Blaine says the French market is becoming more like the overall European market in terms of body styles. Both France and Europe account for 17% share of SUV and cross/utility vehicle sales.

France has more compact minivans, such as the Renault Scenic and Citroen C4 Picasso, than in Europe, and Europe has more station wagons than France. But most segments now are within a few points of one another.