Report Description

Forecast Period

2024-2028

Market Size (2022)

USD70.12 Billion

CAGR (2023-2028)

4.50%

Fastest Growing Segment

NBFCs

Largest Market

Passenger Cars


France automotive loan market is witnessing robust growth with the constantly rising cost of vehicles, because an automotive loan is considered the best method for buying a car. It offers several benefits and, when compared to other forms of loan, automotive loan has a more enticing rate. However, like any loan agreement, it is governed by laws whose goal is to keep customers from being overly indebted.  In France, the Consumer Code has set the maximum car loan amount at 75,000 euros and the total repayment time at 84 months, for new car purchases. Therefore, it stands to reason that more people are using automotive loans to finance the purchase of new vehicles, driving the growth of automotive loans in France during the forecast period.

The process of purchasing a vehicle involves considering several factors to calculate the credit rate. It is essential to consider the duration and amount of the credit, the borrower's financial and professional status, the establishment's profit margin, the type of vehicle, etc., for the loan to be considerable. Generally, the lender lends the money, and the borrower must return the loan in equated monthly installments (EMIs) over a defined tenure, at a specific interest rate. In France, the maximum loan amount is USD79,599, and the minimum loan term is three months. The automotive loan is primarily provided through banks, NBFCs (non-banking financial services), OEM (original equipment manufacturer), and others (fintech companies) over a specified tenure and interest rate.

According to the French automotive market in September 2022, in partnership with NGC, the data revealed that around 141,155 units of passenger cars were sold in September 2022. MarkLines’s 2021 data shows that approximately 1.659 million automotive vehicles were sold in 2021, in France. According to a survey by Crédit Agricole Consumer France, 56% of all French households that used consumer credit, did so to pay for the purchase of a new car. As a result, the French automotive loan market will be driven by automobile or vehicle sales during the forecasted years.

Expansion of Low Emission Vehicles Fueling the Market Growth

Low-emission mobility zones (ZFE-m) are being established in French cities as a part of the campaign against global warming. The most polluting cars are not allowed access to these zones. Some low-income families and small enterprises located in that area could be significantly impacted by the implementation and extension of ZFE-m, concerning purchasing a clean vehicle. For instance, in low-emission mobility areas of France, zero-rate loans for buying an electric or hybrid car will begin in 2023 for two years as an experiment. The loan can be up to USD31846.80 with a 7-year repayment period for a vehicle worth a maximum of USD47770.20 or USD63693.60, for a van. Those whose taxable income does not exceed €14,000 per year and micro-enterprises are eligible for this interest-free loan. Therefore, with the expansion of low-emission or electric vehicles, the demand for automotive loans will increase in France during the forecast years.

Changes within the Consumer Base Fuels Market Growth

During previous financial contractions, consumers avoided unnecessary expenditures and boosted their savings as they prepared for more challenging times in future. Due to the sharp fall in private vehicle sales, these patterns were already evident with COVID-19. France is evolving into a predominantly urban country, having widely separated living and working zones, which explains the expansion of multi-motorization. The imbalance between supply and demand is accounted for by the increasing prices of cars by manufacturers. According to research by the Automotive Club Association, the average annual automotive expenditure in France is above €6,000. According to the French Association of Financial Companies (ASF), the weight of personal auto financing, including car loans, rentals, and leases with the option to purchase, amounts to almost one billion euros per month. This is nearly a third of the total amount of consumer loans granted annually in France. Therefore, the automotive loan is rising with the rise in automotive sales in France.

Increased Use of Direct Digital B2C Channels Fuel Market Growth

The pandemic has already pushed the expansion of digital and online platforms for business-to-consumer (B2C) sales. Following these trends, OEMs and other financial institutions have also started virtualizing their businesses and operating remotely. Thus, digital technologies are reshaping payments, lending, etc., in automotive loans. For instance, with the help of digitalization in the automotive loan industry, lenders can track the profile of potential borrowers and the repayment capacity of borrowers. Digitalization gives consumers more options and a better understanding of interest rates and prices from different financial institutions. This transformation has made the environment more competitive and transparent. Therefore, the automotive loan market has been driven by the rise of digital culture to create new solutions to meet the demands of vehicle buyers in France.


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Market Segmentation

The France automotive loan market is segmented on vehicle type, provider type, percentage of amount sanctioned, and tenure. The market is divided into two-wheeler, passenger cars, and commercial vehicles based on vehicle type. Based on the provider type, the market is segmented into banks, NBFCs (non-banking financial services, OEM (original equipment manufacturers), and others (fintech companies). Based on the percentage of amount sanctioned, the market is segmented into less than 25%, 25-50%, 51-75%, and more than 75%. By tenure, the market is segmented into less than 3 years, 3-5 years, and more than 5 years.

Company Profiles

Crédit Mutuel Arkéa (Financo), BNP Paribas Personal Finance (Cetelem), Crédit Agricole Group (Sofinco), Societe Generale Group, Orange Bank SA, BNP Paribas Personal Finance (Cofinoga), Carrefour Banque, SA, Toyota France Financement, Capitole Finance – Tofinso, Cofidis SA are among the major market players in the global platform that lead the market growth of the France automotive loan market.

Attribute

Details

Base Year

2022

Historical Years

2018 – 2021

Estimated Year

2023

Forecast Period

2024 – 2028

Quantitative Units

Revenue in USD Billion and CAGR for 2018-2022 and 2023-2028

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

Vehicle Type

Provider Type

Percentage of Amount Sanctioned

Tenure

Region

Regional Scope

Northern France, Western France, Southern France, Eastern France, Central France

Key Companies Profiled

Crédit Mutuel Arkéa (Financo), BNP Paribas Personal Finance (Cetelem), Crédit Agricole Group (Sofinco), Societe Generale Group, Orange Bank SA, BNP Paribas Personal Finance (Cofinoga), Carrefour Banque, SA, Toyota France Financement, Capitole Finance – Tofinso, Cofidis SA  

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

Avail of customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

 

Report Scope:

In this report, the France automotive loan market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • France Automotive Loan Market, By Vehicle Type:
    • Two-Wheeler
    • Passenger Car
    • Commercial Vehicle
  • France Automotive Loan Market, By Provider Type:
    • Banks
    • NBFCs (Non-Banking Financial Services
    • OEM (Original Equipment Manufacturer)
    • Others
  • France Automotive Loan Market, By Percentage of Amount Sanctioned:
    • Less than 25%
    • 25-50%
    • 51-75%
    • More than 75%
  • France Automotive Loan Market, By Tenure:
    • Less than 3 Years
    • 3-5 Years
    • More than 5 Years
  • France Automotive Loan Market, By Region:

o   Northern France

o   Western France

o   Southern France

o   Eastern France

o   Central France

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the France automotive loan market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

It is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]  

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary         

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Voice of Customer Analysis (B2C Model Analysis)

4.1.  Sample Size Determination

4.2.  Respondent Demographics

4.2.1.     By Gender

4.2.2.     By Age

4.2.3.     By Occupation

4.3.  Brand Awareness

4.4.  Factors Influencing Purchase Decision

4.5.  Sources of Information

4.6.  Challenges Faced After Purchase

5.    France Automotive Loan Market Outlook

5.1.  Market Size & Forecast

5.1.1.     By Value

5.2.  Market Share & Forecast

5.2.1.     By Vehicle Type Market Share Analysis [Two-Wheeler, Passenger Car, Commercial Vehicle]

5.2.2.     By Provider Type Market Share Analysis [Banks, NBFCs (Non-Banking Financial Services, OEM (Original Equipment Manufacturer), Others (Fintech Companies)]

5.2.3.     By Percentage of Amount Sanctioned Market Share [Less than 25%, 25-50%, 51-75%, More than 75%]

5.2.4.     By Tenure Market Share [Less than 3 Years, 3-5 Years, More than 5 Years

5.2.5.     By Regional Market Share Analysis

5.2.5.1.         Northern France

5.2.5.2.         Western France

5.2.5.3.         Southern France

5.2.5.4.         Eastern France

5.2.5.5.         Central France

5.2.6.     By Company Market Share Analysis (2022)

5.3.  France Automotive Loan Market Mapping & Opportunity Assessment

5.3.1.     By Automotive Type Market Mapping & Opportunity Assessment

5.3.2.     By Provider Type Market Mapping & Opportunity Assessment

5.3.3.     By Percentage of Amount Sanctioned Market Mapping & Opportunity Assessment

5.3.4.     By Tenure Market Mapping & Opportunity Assessment

5.3.5.     By Region Market Mapping & Opportunity Assessment

6.    France Two-Wheeler Automotive Loan Market Outlook

6.1.  Market Size & Forecast          

6.1.1.     By Value

6.2.  Market Share & Forecast

6.2.1.     By Provider Type Market Share Analysis

6.2.2.     By Percentage of Amount Sanctioned Market Share Analysis

6.2.3.     By Tenure Market Share Analysis

7.    France Passenger Car Automotive Loan Market Outlook

7.1.  Market Size & Forecast          

7.1.1.     By Value

7.2.  Market Share & Forecast

7.2.1.     By Provider Type Market Share Analysis

7.2.2.     By Percentage of Amount Sanctioned Market Share Analysis

7.2.3.     By Tenure Market Share Analysis

8.    France Commercial Vehicle Automotive Loan Market Outlook

8.1.  Market Size & Forecast          

8.1.1.     By Value

8.2.  Market Share & Forecast

8.2.1.     By Provider Type Market Share Analysis

8.2.2.     By Percentage of Amount Sanctioned Market Share Analysis

8.2.3.     By Tenure Market Share Analysis

9.    Market Dynamics

9.1.  Drivers

9.1.1.     Rising Demand of Loans for Commercial Electric Vehicles

9.1.2.     Expansion of Loans on Low Emission Vehicles

9.1.3.     Changes within the Consumer Base

9.2.  Challenges

9.2.1.     Increasing Interest Rate Competition

9.2.2.     Bad Credit History

10.  Impact of COVID-19 on Global Automotive Loan Market

10.1.              Impact Assessment Model       

10.1.1.  Key Segments Impacted

10.1.2.  Key Regions Impacted

10.1.3.  Key Provider Type Impacted

11.  Market Trends & Developments

11.1.              Reduction in Interest Rate for of Automotive Loan

11.2.              Increased Use of Direct Digital B2C Channels

11.3.              Growing Sales of Cars

11.4.              Rise in Fintech Companies

11.5.              Surging Demand from Commercial Industries

12.  Porter’s Five Forces Model

12.1.              Competitive Landscape

12.2.              Buyer Power

12.3.              Supplier Power

12.4.              Threat of New Entrants

12.5.              Threat of Substitutes

13.  SWOT Analysis

13.1.              Strengths

13.2.              Weaknesses

13.3.              Opportunities

13.4.              Threats

14.  Policy & Regulatory Landscape

15.  France Economic Profile

16.  Competitive Landscape

16.1.              Company Profiles

16.1.1.  Crédit Mutuel Arkéa (Financo)

16.1.1.1.      Company Details

16.1.1.2.      Product & Services

16.1.1.3.      Financials (As Reported)

16.1.1.4.      Key Market Focus & Geographical Presence

16.1.1.5.      Recent Developments

16.1.1.6.      Key Management Personnel

16.1.2.  BNP Paribas Personal Finance (Cetelem)

16.1.2.1.      Company Details

16.1.2.2.      Product & Services

16.1.2.3.      Financials (As Reported)

16.1.2.4.      Key Market Focus & Geographical Presence

16.1.2.5.      Recent Developments

16.1.2.6.      Key Management Personnel

16.1.3.  Crédit Agricole Group (Sofinco)

16.1.3.1.      Company Details

16.1.3.2.      Product & Services

16.1.3.3.      Financials (As Reported)

16.1.3.4.      Key Market Focus & Geographical Presence

16.1.3.5.      Recent Developments

16.1.3.6.      Key Management Personnel

16.1.4.  Societe Generale Group

16.1.4.1.      Company Details

16.1.4.2.      Product & Services

16.1.4.3.      Financials (As Reported)

16.1.4.4.      Key Market Focus & Geographical Presence

16.1.4.5.      Recent Developments

16.1.4.6.      Key Management Personnel

16.1.5.  Orange Bank SA

16.1.5.1.      Company Details

16.1.5.2.      Company Details

16.1.5.3.      Product & Services

16.1.5.4.      Financials (As Reported)

16.1.5.5.      Key Market Focus & Geographical Presence

16.1.5.6.      Recent Developments

16.1.5.7.      Key Management Personnel

16.1.6.  BNP Paribas Personal Finance (Cofinoga)

16.1.6.1.      Company Details

16.1.6.2.      Product & Services

16.1.6.3.      Financials (As Reported)

16.1.6.4.      Key Market Focus & Geographical Presence

16.1.6.5.      Recent Developments

16.1.6.6.      Key Management Personnel

16.1.7.  Carrefour Banque, SA

16.1.7.1.      Company Details

16.1.7.2.      Product & Services

16.1.7.3.      Financials (As Reported)

16.1.7.4.      Key Market Focus & Geographical Presence

16.1.7.5.      Recent Developments

16.1.7.6.      Key Management Personnel

16.1.8.  Toyota France Financement

16.1.8.1.      Company Details

16.1.8.2.      Product & Services

16.1.8.3.      Financials (As Reported)

16.1.8.4.      Key Market Focus & Geographical Presence

16.1.8.5.      Recent Developments

16.1.8.6.      Key Management Personnel

16.1.9.  Capitole Finance – Tofinso

16.1.9.1.      Company Details

16.1.9.2.      Product & Services

16.1.9.3.      Financials (As Reported)

16.1.9.4.      Key Market Focus & Geographical Presence

16.1.9.5.      Recent Developments

16.1.9.6.      Key Management Personnel

16.1.10.                Cofidis SA

16.1.10.1.    Company Details

16.1.10.2.    Product & Services

16.1.10.3.    Financials (As Reported)

16.1.10.4.    Key Market Focus & Geographical Presence

16.1.10.5.    Recent Developments

16.1.10.6.    Key Management Personnel

17.  Strategic Recommendations/Action Plan

17.1.              Key Focus Areas

17.2.              Target Regions

17.3.              Target Vehicle Type

17.4.              Target Provider Type

17.5.              Target Percentage of Amount Sanctioned

17.6.               Target Tenure

18.   About Us & Disclaimer

Figures and Tables

Frequently asked questions

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Key factors that are driving the France automotive loan market growth include the growing digital penetration, rising sales of passenger cars, low interest rate on car loan in France, etc.

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According to the France Automobile Manufacturers Association's "Passenger Car Market Trend Survey, about 30% to 40% of people in France buy cars with loans.

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The growing trend in automotive industry is that the industry is headed in terms of producing renewable, eco-friendly technology which will be integrated into cars in automotive industry in France.

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Some key players operating in the France automotive loan include Crédit Mutuel Arkéa (Financo), BNP Paribas Personal Finance (Cetelem), Crédit Agricole Group (Sofinco), Societe Generale Group, Orange Bank SA, BNP Paribas Personal Finance (Cofinoga), Carrefour Banque, SA, Toyota France Financement, Capitole Finance – Tofinso, Cofidis SA

profile

Srishti Verma

Business Consultant
Press Release

France Automotive Loan Market is Dominated by Passenger Cars During the Forecast Period

Jan, 2023

Expansion of fintech companies, independent leasing companies with digital channels, automotive OEMs, low-interest rates, and the increasing sales of private vehicles are the leading factors driving