French New Car Sales Decline Amid Economic Uncertainty

New car registrations in France have declined, reflecting ongoing economic concerns that are affecting consumer confidence. Persistent inflation, rising living costs, and uncertain economic forecasts have made households cautious about major purchases. Data shows a noticeable drop in vehicle sales, particularly in the first half of the year, as buyers delay investments in big-ticket items. Automakers and dealers are feeling the impact, with some revising production plans and adjusting marketing strategies to respond to softer demand. The automotive sector, already navigating a complex transition toward electrification, now faces additional pressure from weakening purchasing power. While government incentives for electric vehicles remain in place, broader financial anxieties appear to be outweighing these benefits for many consumers. The trend underscores how macroeconomic conditions can quickly influence spending behavior, especially in industries reliant on discretionary income. Without a clear improvement in economic sentiment, the outlook for car sales remains subdued. n— news from The Wall Street Journal

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