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France Autos Report Q3 2015

63 Pages BMI Research June 17, 2015 SKU: BMI5590680

In 2015 and 2016, we forecast a 1.5% and 0.7% increase in vehicle sales as weak growth in the passengercar market compensates for stagnation across the commercial vehicle (CV) segment. Indeed, this forecast isreflective of a broader story emerging throughout the French economy whereby consumer spending andretail-oriented industries, such as the passenger car market, have shown signs of at least a temporary uptickin activity. However, on the enterprise side, productive investments by businesses still remain minimal,which is dragging down CV demand.

This forecast scenario is similar to 2014 when total vehicle sales increased 0.2%, to 2,212,571 units, on theback of a 0.3% growth in passenger car registrations and a 0.2% decline in CV registrations. Growth seen inthe passenger car segment remained weak due to the weak household consumption will be made worse byincreasing unemployment while CVs underperformed thanks to very limited fixed investment by France'soverleveraged businesses that are burdened with high labour costs.

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France Autos Report Q3 2015

BMI Research
June 17, 2015

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