During the economic downturn, France’s automobile industry was hit especially hard. Consumers tightened their belts, and car sales all but evaporated during the recession years. However, an upturn across Europe and globally has seen the country’s three largest car manufacturers roar back from the brink.
Although challenges remain, resurgent sales across Europe have pushed French automakers back on track. In July, sales began to surge once again. Despite a slowdown in the domestic French market, the overall European recovery has given the industry a new lease of life.
The PSA Group secured second place among European sellers with an 11.1% market share, boosted by a 3.9% rise in sales. Renault outperformed with an impressive 15.3% increase, raising its market share from 8.6% to 9.4%.
Car Sales Rebound Across Europe
Registrations of new cars rose steadily between July and August. According to the European Automobile Manufacturers Association (ACEA), sales in July were 5.6% higher year-on-year, with August continuing the trend at 2.1% higher.
Interestingly, France was the only major EU market to register a decline in July, down 4.3%, but the international demand offset this dip.
Paris Motor Show: A Showcase of Strength
At the Paris Motor Show, Peugeot, Renault, and Citroën demonstrated renewed strength with new models and concept cars. This refresh in product lines has supported their recovery, helping increase their combined domestic market share from 55% to 57% over the past year.
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Peugeot: Riding high after the new 308 won Car of the Year, Peugeot also unveiled the futuristic Quartz concept car, generating excitement.
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Renault: Developed the Eolab, part of a government-backed research project to reduce fuel consumption.
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Citroën: Launched the quirky and eco-friendly Cactus model, turning heads at the show.
From Struggle to Stability
Peugeot, once in dire need of restructuring, had to be bailed out by the French government and China’s Dongfeng Motor, each investing £660 million for a 14% stake. This historic deal ended two centuries of Peugeot family control.
Renault also struggled, selling its stake in Volvo Trucks, cutting model ranges, freezing pay, and restructuring labor agreements. Yet, perseverance paid off.
Today, with European car sales rising by 5% year-on-year to around 12.5 million units, the French automobile industry is firmly back in the game.
Business Outlook: Opportunity in France
The revival of France’s automobile sector reflects broader economic recovery, and with rising consumer confidence, now is the right time to invest or expand in France.
At Open a European Company, we help entrepreneurs and investors set up smoothly across Europe. Whether you’re interested in Company Formation in France, Opening a Branch in France, or Registering a Subsidiary, our team of experts is here to guide you every step of the way.
📞 Call us today on +44 (0)208 421 7470 or get in touch here to explore your options for doing business in France and beyond.
