Market Trends of France Used Car Industry
The Online Segment of the Market to Gain Traction During the Forecast Period
The adoption of advanced technology by tech-savvy young individuals, the emergence of e-commerce marketplaces, and the aggressive strategies by various companies to spend on online advertisements are boosting the demand for used cars sold through online platforms. These platforms assist consumers in making informed decisions as end-to-end information on vehicles is already listed, such as vehicle make, model, kilometers driven, engine capacity, and condition.
Moreover, increasing internet penetration rates and a high urban population across France contribute to developing an efficient ecosystem wherein vehicle owners can reach out to buyers from different parts of a region and initiate a smooth online sales process without any need to visit a physical location.
The internet penetration rate in France stood at 85.33% in 2022, an increase from 84.71% in 2020. France boasts one of the highest urbanization rates in Europe, with 81.51% of its population residing in urban areas as of 2022. These consumers are tech-savvy, and most have the financial capability to make an informed decision to purchase a vehicle for their mobility. Owing to these factors, France's online used car market is expected to showcase positive growth in the future.
Although France's public transportation infrastructure is highly efficient, consumers in the country prefer private vehicles for shorter commutes, which enhances the potential for personal mobility, thereby assisting the growth of the used car market.
In order to gain a competitive advantage in the lucrative online used car market, various players across France actively integrate into the cross-border sales opportunity with a high focus on marketing. With the increasing internet penetration and usage of online classified platforms for making purchasing decisions, consumers can buy second-hand cars from their neighboring countries, which helps them get a better price for used car models.
Furthermore, improved offerings such as an enormous number of photos and videos of the used vehicles being sold through online platforms and easy online instant finance, insurance, and warranty service are expected to fuel the demand for used cars in France in the coming years.
Electric Segment of the Market to Showcase Considerable Growth During the Forecast Period
The increased investment to build electric vehicle charging infrastructure across France is one of the critical reasons for the positive impact on market demand. With the availability of a supply chain network for electric used cars in the market, significant traction in terms of volume sales is expected. Furthermore, an essential shift in people's transportation habits, such as opting for a sustainable transportation medium, is likely to contribute to the considerable surge in the electric used car segment.
The used battery electric vehicles (BEVs) in the French market in October 2023 witnessed a marginal increase in registrations, owing to the lower list prices of these vehicles, compared to September 2023. Moreover, the BEV segment is witnessing growth due to the integration of Tesla 3 models across France. The market witnessed a decline in used plug-in-hybrid car registrations in October 2023 compared to September 2023, attributed to the declining consumer interest in adopting this technology.
Moreover, the aggressive focus of the French government to promote the reduction in carbon emissions and the subsequent ban on petrol and diesel vehicles by 2040 will also positively impact the demand for the electric segment of the market. Although the French market witnessed an increase in new as well as pre-owned car prices at the beginning of 2024, it is expected to correct itself in the coming years. For instance,
- The consumer price index (CPI) of secondhand and new cars in France touched 112.84 in January 2024 compared to 112.44 in December 2023, representing a MoM growth of 0.3% between December 2023 and January 2024.
However, in the short term, petrol-operated used cars will cease to remain the popular choice among consumers. With the lowering price of electric used cars in the coming years and improvements in the charging infrastructure across France, there will be a massive demand for the electric segment of the market during the forecast period.
