In 2015, we forecast a 1.4% drop in vehicle sales due to expected weakness in both the passenger car andcommercial vehicle (CV) segments. In 2014, total vehicle sales increased 0.2%, to 2,212,571 units, due tomodest growth in the passenger car and CV segments. However, in line with our core view, the sales uptickin the first half of the year subsided, and the market entered contractionary territory in the latter months ofthe year as broader economic malaise weighed on autos sales.
Indeed, we believe that recent growth seen in both the passenger car and light commercial vehicle (LCV)segments will not continue due to the continued stagnation of the French economy. Passenger car sales willbe limited by weak household consumption made worse by increasing unemployment. Demand forcommercial vehicles will be weighed down as business investment continues to decline; with heavy trucksexperiencing the hardest falls owing to deteriorating sentiment in the construction and retail sector.