France Used Car Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

France Used Car Market has been segmented by Vendor Type (Organized and Unorganized), Fuel Type (Petrol, Diesel, Electric, and Others), Body Type (Hatchback, Sedan, and SUVs and MPVs), Sales Channel (Online and Offline). The report offers market size and forecasts for the United Kingdom Used Car Market in value (USD Billion) for all the above segments.

Market Snapshot

France Used Car Market Overview
Study Period: 2018-2027
Base Year: 2021
CAGR: 4.2 %

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Market Overview

France used car market was valued at USD 9.96 Billion in 2021, and it is expected to reach a value of USD 12.74 billion by 2027, registering a CAGR of 4.2% during the forecast period (2022 - 2027).

Amid the COVID-19 pandemic-associated lockdown, the demand for used cars witnessed a halt in sales for the first half of the year 2020. However, since the second half of the year 2020, the demand for used vehicles started to pick the pace and continued until 2021. The prolonged waiting period for new vehicles encouraging a large number of customers across the country to opt for used vehicles, which is likely to drive the market growth during the forecats period. 

Over the medium term, factors such as rising income levels, increased demand for luxury vehicles, shorter car ownership periods, brisk import-export activity, and a growing consumer preference for small and compact vehicles are expected to contribute to the market's expansion. France used car market is expanding rapidly. Some of the other reason for this is the entry of organized players into the market, which has addressed the trust deficit that has plagued the used car market in those countries for many years.

  • According to the automotive expert, French used-car transactions in 2021 was around 3.9 percent higher than in 2019. This contrasts sharply with a 25.1 percent drop in new-car registrations. Furthermore, in 2021, more than six million cars have changed hands in a single year.

However, some of the unorganized players do not provide warranties on pre-owned vehicles. Furthermore, some sellers commit fraud by re-painting and removing dents from accident vehicles to conceal their damage and obtain a falsely inflated value, which causes buyers to be wary of purchasing used cars. As a result, the higher rate of malpractices and unorganized dealers' larger market share pose a threat to the growth of the used car market. This might be a factor that hampers the target market growth during the forecast period.

Scope of the Report

Used vehicles are referred to as pre-owned vehicles. In other words, a previously owned vehicle had at least one previous owner. Its cost varies greatly depending on the model, year, and condition. One of the most important factors for used car buyers is the condition of the vehicle.

France Used Car Market is segmented by fuel type, body type, vendor type, and sales channel.

France Used Car Market is segmented by Fuel Type, the market is segmented into Petrol, Diesel, Electric, and Others. By Body Type, the market is segmented into Hatchback, Sedan, SUVs and MUVs. By Vendor Type, the market is segmented into Organized and Unorganized. By Sales Channel, the market is segmented into Online and Offline. The report covers the market size and forecast in value (USD Billion) for all the above segments.

Vendor Type
Organized
Unorganized
Fuel Type
Petrol
Diesel
Electric
Others
Body Type
Hatchback
Sedan
SUVs and MPVs
Sales Channel
Online
Offline

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Key Market Trends

2-4 Years Old Cars are Expected to Witness Significant Growth

Online sales have emerged as a critical market growth factor. Online sites in the used car market have played an important role in allowing customers access with a single click. The existence of such developments resulted in a cumulative growth in demand for used cars. Furthermore, factors such as affordability, the availability of used cars, the increase in the need for personal mobility, and the emergence of various online players to organize the market have resulted in market growth. For instance,

  • In November 2021, the used market returned to growth, increasing by 5.1% to 462,702 units (NGC-Data data). In 2020, registrations fell over the same month due to confinement, but not by a significant amount (-4%, to 444,959 units). In comparison, 463,429 used vehicles were sold in 2019.
  • In France, 3.8 used cars were registered for one new car in November. The most spectacular increase was seen in the 2-4-year-old used car market, which increased by 36.1 percent. Outstanding for several months, the segment of cars less than a year old increased by 5.4 percent this month, accounting for only 8% of registrations. In contrast, that of products aged 8 years and older fell by 3.5 percent, capturing more than half of the second-hand market (51.3 percent ).

Further, with the faster replacement of cars by fleet operating companies, especially car rental companies, aimed at reducing maintenance cost, is likely to drive the influx of 2-4 years old used cars in the market. This is likely to remain prominent driver during the forecats period.

France Used Car Market_piechart

Electric Segment is Expected to Grow With A Significant Pace Over The Forecast Period

Increased investment in the electric segment is also one of the key reasons, which positively impacts the market demand. With the availability of a supply chain network for used cars in the market, significant traction in terms of volume sales is expected. Furthermore, a significant shift in people's transportation habits, such as opting for individual mobility with their own vehicle, is expected to drive a significant increase in the market. 

AUTO1.com, one of the largest wholesale used car platforms, analyzed EV trading data and conducted its own online survey of 16,700 partners. In 2021, AUTO1.com sees a year-over-year increase of more than 100 percent in B2B trading of battery-electric (BEV), plug-in-hybrid (PHEV), and hybrid vehicles (HEVs), totaling more than 11,500 unit sales. EVs are making their way into the used car market in greater numbers. In terms of selling at least one EV unit in 2021, French dealers contribute around 32 percent in the EU countries.

Market Trend_2

Competitive Landscape

The number of partnerships and geographical expansion among online solution providers, system providers, original equipment manufacturers (OEMs), and other stakeholders has increased significantly in recent years. Companies gain access to their partners' existing knowledge and expand their portfolio by adding an appealing range of services and car models through these collaborations. This major used car market trend is critical in driving the adoption of such vehicles. For instance, 

  • In December 2021, Cazoo Ltd., an online car retailer, will launch operations in France in December 2021 as part of its strategy to expand across Europe. It follows the recent acquisitions of Cluno, and Swipcar. This would include, among other things, buying cars directly from customers, fully digital financing, and all-inclusive monthly subscriptions.

Recent Development

  • In September 2021, Renault Group as well as its affiliates RCI Bank and Services, which specializes in vehicle financing and services, purchased an equity stake in Mobility Trader Holding GmbH in order to contribute to the growth of the heycar platform in Europe and the launch of the platform in France. This acquisition will strengthen Renault Group's presence in the used car ecosystem by providing a high-quality digital experience in a rapidly growing used car market marked by digitalization.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Vendor Type

      1. 5.1.1 Organized

      2. 5.1.2 Unorganized

    2. 5.2 Fuel Type

      1. 5.2.1 Petrol

      2. 5.2.2 Diesel

      3. 5.2.3 Electric

      4. 5.2.4 Others

    3. 5.3 Body Type

      1. 5.3.1 Hatchback

      2. 5.3.2 Sedan

      3. 5.3.3 SUVs and MPVs

    4. 5.4 Sales Channel

      1. 5.4.1 Online

      2. 5.4.2 Offline

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 AutoScout24 GmbH

      2. 6.2.2 Bernard Group

      3. 6.2.3 Goupe Gueudet

      4. 6.2.4 Aramis Group

      5. 6.2.5 Cazoo Ltd.

      6. 6.2.6 ParuVendu

      7. 6.2.7 Heycar

      8. 6.2.8 BYmyCAR

      9. 6.2.9 Arval AutoSelect

      10. 6.2.10 AutoBeeb.com

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The France Used Car Market market is studied from 2018 - 2027.

The France Used Car Market is growing at a CAGR of 4.2% over the next 5 years.

The France Used Car Market is valued at 9 Billion USD in 2018.

The France Used Car Market is valued at 12 Billion USD in 2027.

Aramis SAS, AutoScout24 GmbH, La Centrale Group, Bernard Group, Cazoo Ltd. are the major companies operating in France Used Car Market.

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