More than half of newly registered cars last year in France are low-end small cars, and its sales in January 2013 accounted for 53 percent of the month's total, according to Manufacturers Committee of French Automobile .

According to Francois Roudier, a spokesperson of CCFA, as most car makers flock to small cars, which are popular for their low fuel consumption, the demand has outrun the need, which has led to fierce price wars and smaller profits, People's Daily reported Friday.

French car makers have spared no effort in making their models unique to meet the growing domestic need for small cars.

However, due to the low prices and profits of small cars, the surge is of little benefit to the car industry's long term development.

Roudier called for an overall structural adjustment with car makers. He suggested small car makers close European plants, cut local jobs and move operations to emerging market countries. Some French car makers have already closed their domestic automobile plant so as to lower costs and maintain profits.

In terms of efforts made in structural adjustment, Roudier revealed that the French government has introduced favorable conditions for developing hybrid cars and electric cars.

Car companies have also made major investments in renewable energy power technologies. For example, Peugeot Automobiles focuses on diesel hybrid mobiles, and Renault focuses on electro-mobiles.