Automotive sector in France

An Expert's View about Automobile in France

Posted on: 24 Aug 2012

Home to 16 domestic and international carmakers, as well as 315 component manufacturers France is the second largest producer and fourth largest market in Europe.

Automotive sector in France Home to 16 domestic and international carmakers, as well as 315 component manufacturers France is the second largest producer and fourth largest market in Europe. Market overview The vehicle production industry employs over 170,000 people, compared with 150,000 at the beginning of the decade, and generates an average annual turnover of EUR88bn. Latest estimates from the OICA have shown that autos production in France increased nearly 2.9% y-o-yto 2.29mn units in 2011. Domestic groups PSA Peugeot Citroen and Renault dominate the sector (road and sport), nevertheless foreign carmakers such as Ford Motor, Volkswagen (VW) and Opel also have their share of the market. There are substantial production facilities in France. Both PSA Peugeot Citroen & Renault have plants in 4 locations across France. France is also home to major tier one suppliers such as Michelin (tyre manufacturer), Faurecia (seat manufacturer) and Valeo (braking, thermal, and electrical systems). Car ownership rates are relatively high, creating a large market for parts and accessories. The market is now the fourth largest in the EU after Germany, the UK and Italy. Many manufacturers cite the 'quality of the automotive infrastructure' as a reason for their presence in the country. Manufacturers have shown significant development of eco-friendly technology. France rolled out a car-sharing plan in September 2011 in Paris called Autolib, which will see some 3,000 EVs being made available to the public. The French Motorsport sector is worth an approximate EUR1.5 billion, consistently less than the UK but significant nonetheless. Rallying dominates the sector, followed by single seater racing, Offroad and Sportcar racing. France is in negotiations to hold a Formula 1 race again. Key opportunities ξ Electric vehicle (EV) segment and Hybric EV – It ranges from industrial research to infrastructure development and provision of subsidies for electric car purchase. ξ The Government announced on 25/07/12 a plan to support the automotive industry which focuses on incentives for the purchase of clean vehicles. ξ New product lines could boost demand for French cars in export markets. ξ The future for small cars looks bright as consumer preferences shift following the implementation of an eco-tax. Latest export opportunities – Automotive Latest export opportunities – France Getting into the market France is often perceived as a difficult market to penetrate although a British company with innovative and competitive products/services will stand good chance of winning business in France. It is important to note that the journey from engaging with a company to signing a contract can be very lengthy and British companies should be prepared to spend time building up the relationship and to demonstrate persistence in proposing their offer. Although a lot of business people would speak some English, the preferred language for doing business will be French. UKTI can assist with facilitating introduction to the right contacts. More about doing business in France Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. ξ Audrey Berté, Senior Trade Advisor, British Embassy Paris Tel: +33 (0)1 44 51 33 29 or email: ξ Daniel Ashley, Trade Advisor, British Embassy Paris Tel: +33 (0)1 44 51 31 82 or email: Contact your local international trade team UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events – Automotive Other events Mondial de l’automobile 29 Sep-14 Oct 2012, Paris, every two years Equip’Auto October 2013, Paris, every two years Useful links More about OMIS and other UKTI services for exporters
Posted: 24 August 2012

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