France Autos Report Q4 2014

Business Monitor International
September 17, 2014
62 Pages - SKU: BMI5329131
Countries covered: France

France Autos Report Q4 2014

BMI View: In 2014, we forecast a 0.9% drop in vehicle sales. This comes from a 1% forecasted decline inthe 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 boostthe market over the course of the year. However, the country's weak consumer story is limiting purchasesmore than we previously envisaged, and we believe this will continue to weigh on car sales in the comingmonths. Accordingly, we now forecast a drop of 1%.

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



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