New Market Research Report: France Autos Report Q4 2014

In 2014, we forecast a 0.9% drop in vehicle sales. This comes from a 1% forecasted decline in the passenger car segment and 0.3% fall in commercial vehicle (CV) sales.

We expected pent-up demand following several years of decline and low base effects from 2013 to boost the market over the course of the year. However, the country's weak consumer story is limiting purchases more than we previously envisaged, and we believe this will continue to weigh on car sales in the coming months. Accordingly, we now forecast a drop of 1%.

Corporate lending remains subdued by the macroeconomic environment, with businesses continuing to push ahead with deleveraging. This is likely to continue throughout 2014. Furthermore, capacity utilisation remains low, and we expect that most businesses will hold off further capital expenditure and other projects until the economic outlook for France becomes markedly brighter.

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We believe businesses will be unlikely to invest in commercial vehicles in this weak business and economic environment, and this has partly tempered our 2014 sales outlook for the segment. However, some relief for the segment will come from pent-up demand in the market, which served to boost sales in H213, in addition to low base effects from declining sales volumes in H113. We forecast 1% growth in the LCV segment and a 10% drop in heavy truck sales.

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 President Francois Hollande.

The France Autos Report features the latest data and forecasts covering production, sales, imports and exports.

Business Monitor International (BMI)'s France Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the automotives market in France.

Key Benefits

* Benchmark BMI's independent automotives industry forecasts on France to test other views - a key input for successful budgetary and planning in the French automotives market.
* Target business opportunities and risks in the French automotives sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in France.
* Assess the activities and market position of your competitors, partners and clients via our Competitive Landscape Analysis.

Coverage

BMI Industry View

Summary of BMI's key industry forecasts and views, covering production, sales and the introduction of new technology or products.

Global, Regional and Country Industry Overviews

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