"France Autos Report Q4 2015" is now available at Fast Market Research

In 2015 and 2016, we forecast a 5.1% and 3.1% increase in vehicle sales as resurgent growth in the passenger car market compensates for low volumes across the commercial vehicle (CV) segment. Indeed, this forecast is reflective of a broader story emerging throughout the French economy whereby consumer spending and retail-oriented industries, such as the passenger car market, have shown a sustained uptick helped by a cyclical uptick in the economy.

On the enterprise side, productive investments by businesses still remain minimal, which is dragging down potential LCV demand. Nevertheless, heavy truck and bus sales will still benefit from sales growth as sales volumes normalize after their sharp falls in 2014 sparked by the introduction of Euro-6 emissions regulations.

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We forecast vehicle production to expand 6.9% and 3.1% in 2015 and 2016, respectively, as French manufacturers begin to address their competitiveness issues, PSA completes in consolidation phase and as Renault pushes forward with its product blitz and production ramp ups. However, French manufacturers do still remain regionally uncompetitive due to high labour costs and still weak productivity.

The decline in France's industrial competitiveness over the last ten years is a fundamental issue facing the country. However, domestic producers have made significant steps to improve their competitiveness. Most notably, PSA Peugeot Citroen has continued to push through its reformist program having successfully returned the company to positive operating profit in 2014 after EUR1.04bn loss in 2013. Furthermore, Renault, is beginning to address its overcapacity issues in the country by leveraging synergies with its corporate alliance partner Nissan Motor and its joint ventures with Daimler.

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

BMI Research'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.

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