France Autos Report Q2 2014

France Autos Report Q2 2014

Published: March 2014
Publisher: Business Monitor International (BMI)
Product ref: 196349
Pages: 67
Format: PDF
Delivery: Immediate download

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BMI View: In 2013, vehicle sales in France declined 5.4% on the back of a 5.7% fall in the passenger car segment and 3.9% fall in the CV segment. In 2014, we forecast a 2.2% increase in vehicle sales. This comes from a 2% forecasted uptick in the passenger car segment, and 3.2% increase in commercial vehicle (CV) sales.

BMI believes rising unemployment, low consumer confidence and stagnant real wage growth have kept private consumption in the country subdued throughout 2013 and this has hit the car segment over the year to date. Passenger car sales resurged somewhat in the final months of 2013 despite this bearish outlook, on the back of low base effects and pent-up demand in the market, and this uptick is not a sign of a return in consumer confidence.

Autos production in France is increasingly unattractive due to high labour costs. BMI believes that significant job cuts will be necessary across the supply chain. The decline in France's industrial competitiveness is a fundamental issue facing French President François Hollande.

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Related research categories

By market: France (in Europe)


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