FX.co ★ French Car Registrations Plunge 38% in January, Reversing Year-End Surge

French car registrations contracted sharply at the start of 2026, with the indicator dropping to -38.0% in January on a month‑over‑month basis. The fresh data, updated on 24 February 2026, marks a dramatic reversal from December 2025, when registrations were still rising at a robust 30.1% compared with the previous month.

The shift from strong growth to steep decline underscores how volatile the French auto market has been around the turn of the year. The month‑over‑month comparison shows that after a surge in registrations at the end of 2025, demand pulled back significantly in January 2026, erasing much of the previous month’s momentum. Investors and analysts will be watching upcoming releases closely to see whether this sharp January drop signals a temporary correction after December’s spike or the start of a more persistent slowdown in the sector.