Last Year, 1.34 Million Cars Produced in France... Lowest Since the 1960s

Impact of Stellantis' Production Decline
Parts Procurement Disruptions and Brand Image Deterioration

The number of cars produced in France last year reached its lowest level since the 1960s, excluding the period of the COVID-19 pandemic.

On the 19th (local time), French economic newspaper Les Echos reported, based on data obtained from manufacturers, that the number of cars (including trucks) produced in French factories last year was 1.34 million units. This represents an 11% decrease compared to the previous year. Compared to 2020, when large-scale lockdowns and repeated production halts occurred due to COVID-19, production increased by only 40,000 units.

The decline in production volume was due to the downturn in the business activities of Stellantis, which owns the most production plants in France. It is analyzed that some factories faced production disruptions because they could not procure certain parts due to supply chain issues. In fact, the total number of cars produced last year at the five factories Stellantis owns on the French mainland?a multinational automotive company based in France, Italy, and the United States?was 565,000 units, a 23% decrease compared to 737,000 units in 2023. Stellantis accounted for half of the cars produced in France in 2023, but only 42% last year.

The reduction in production at some factories due to vehicle model change cycles was also cited as a cause. Additionally, production of models such as the small hatchback Peugeot 308 and the mid-size sedan Peugeot 508 decreased by about 25%. This decline is attributed to the brand’s damaged image caused by previous engine defects and the higher price of Peugeot vehicles compared to competitors, which increased consumer burden and led to a loss in market share.

Another representative French automotive brand, Renault, saw a slight increase in production. Last year, production in France recorded 486,960 units, a 2% increase from the previous year. However, when considering the Renault Group as a whole, only about 20% of production occurs in France. Most production takes place in factories in T?rkiye or Spain.

However, since the automotive industry hit a low point last year, it is expected to show signs of recovery this year. In the case of Stellantis, thanks to the marketing of new models such as the new Peugeot 3008 and 5008, production is expected to increase by about 20% to 678,000 units.