Automotive market: prices at the heart of concerns, a strategic win for Citroën ?

The year 2025 concluded with a harsh reality for the French automotive industry. Recording its fourth-worst sales performance since 1972, the sector is struggling to regain its historic momentum. This trend is visible across Europe, which remains the only major global region yet to reach its pre-pandemic registration levels. In this tense climate, a recent study by L'Observatoire Cetelem highlights a clear truth: car prices have become the primary barrier to purchase. For the "double chevron" brand, this analysis validates a strategy focused on affordability, positioning Citroën as a key player capable of meeting actual consumer demand.

A European market weakened by a massive renewal deficit

The automotive sector is navigating a crisis of unprecedented duration. While the 2008 financial crash was followed by a quick recovery, the post-2020 era tells a different story. Between 2015 and 2019, the European market was healthy, with 16 to 17 million vehicles registered annually. In contrast, the 2020-2025 period averaged only 11.75 million units. According to L'Observatoire Cetelem, the cumulative deficit over five years exceeds 20 million private vehicles.

While the US and China are seeing growth, Europe is lagging behind. Only Spain and Portugal show significant volume increases, but the continent overall is still missing one million vehicles per year compared to the pre-Covid era. In France, the annual shortfall represents a loss of three billion euros in tax revenue. This slump has led to an aging fleet, with the average car age rising from 9 years in 2014 to 11 years in 2024. This trend raises economic concerns for production sites and employment, as well as environmental issues, as older cars emit more CO2. This global situation echoes the industry's alarm: the market desperately needs truly affordable cars.

Cetelem study highlights the urgency of new pricing policies

To identify growth levers, L'Observatoire Cetelem surveyed 15,774 motorists across 13 countries. While 92% of respondents still hold a positive image of cars, the verdict on cost is unanimous. Globally, 89% of participants find new car prices too high, a figure that jumps to 94% in France. China is the notable exception, where only 55% view prices as excessive.

The study reveals that 84% of potential buyers have noticed a sharp price increase since 2020. More importantly, over half of them believe this hike is unjustified. Consequently, purchase price is now the top buying criterion for 36% of motorists. This inflation, initially used by manufacturers to offset low production volumes, has priced out many households. The study shows that the share of middle and lower-income brackets in new car purchases has shifted dramatically, signaling a dire need for cheaper models to restart the industrial engine.

Citroën’s positioning: a concrete answer to consumer needs

In response to these findings, the study suggests that manufacturers should prioritize simpler, cheaper vehicles. This is a priority for 66% of French respondents. This is exactly where Citroën’s strategy shines. The French brand stands out as the only manufacturer to have significantly lowered its prices over the last five years. By moving against the industry's inflationary trend, Citroën has placed affordability back at the core of its DNA.

Offering accessible cars does not mean sacrificing quality. The manufacturer proves it is possible to combine a competitive price with signature comfort, bold styling, and essential technology. The study shows that 38% of French drivers are willing to accept fewer personalization options or driver aids if it lowers the final price. Citroën’s "smart simplicity" approach aligns perfectly with these findings. By streamlining its range, Citroën offers a real solution to consumers who have been hesitant due to high prices.

Will 2026 be the year of growth for Citroën?

The issue of car pricing is not new, but this study confirms the direct link between falling sales volumes and high costs. As 2025 ended on a high note for the brand, 2026 is set to be a year of strong growth. With a fully renewed range designed for affordability, Citroën is in an ideal position. Following the success of the Ami mobility solution, the brand has once again anticipated market needs. By aligning with the real financial capacity of European households, Citroën has every reason to believe it will gain significant market share in the near future.