The market for licence-free cars - France (2024)

1.2 Global and European markets

Worldwide market

There are no worldwide data specifically for the "no-license" market, which is a type of vehicle that exists only in Europe. There are, however, data for the "mini-car" market, which encompasses Europe's licence-free cars, but especially ultra-compact car models such as the Fiat *** and Abarth. The minicar market was estimated to be worth $**.* billion in ****, compared with $**.* billion in **** (***) of *.*%, reaching $**.* billion in ****. [***]

Global market size for mini cars France, **** - *****, in billions of US dollars Source: ****

The main reason for the growth of this market is the lower cost of this type of vehicle, making it possible to target consumers with lower incomes. In addition, lower fuel consumption is another advantage of mini-cars, especially in the current inflationary climate.

In addition, the development of electric powertrains, a major growth driver for the automotive sector as a whole, should be even more so for minicars. [***] Indeed, as these models are lighter, it is easier for manufacturers to combine electric motorization and performance than for heavier vehicles.

**% electric

Worldwide sales of minicars by powertrain World, ****, % of sales Source: ****

European market

In Europe, the number of new licence-free car registrations has risen by almost **% in * years, from **,*** new vehicles in ...

1.3 Strong growth in the French market

Since recently, the French market for licence-free cars has been growing strongly. Indeed, the number of carts sold between **** and **** has almost doubled, rising from **,*** to **,***[***], with **,*** vehicles sold in * years .

There are two main reasons for this leap in sales volume:

the dazzling success of the Citroën Ami, which has been on sale since **** the lowering of the age limit for driving this type of vehicle from ** to ** since ****

Number of licence-free cars sold by manufacturers France, **** vs ****, in units Source: ****

According to LeLynx, an online price comparator, the average price of licence-free cars is **,*** euros. This is also the estimate given by insurly. So, we can estimate the market size in value in **** of the licence-free car by multiplying the number of carts sold that year by the average price:

Market size = **,*** VSP x **,*** euros = ***,***,*** euros

Thus, the market size for licence-free cars in **** is estimated at ***.* million euros.

1.4 Foreign trade in cars

The customs product nomenclature does not allow us to analyze foreign trade in license-free cars alone. It does, however, allow us to study the trade balance for code ****: "Passenger cars and other motor vehicles principally designed for the transport of less than ** persons", providing a clearer picture of trade in this type of product.

Despite a steady increase in exports, and a recent decrease in imports, France's trade balance for cars remains in deficit, and this deficit persists, rising from -$**.*** billion in **** to -$**.*** billion in ****. In detail, car exports amount to $**.*** billion in ****, while imports total $**.*** billion. Thus, in ****, the coverage rate (***) for the car sector was **%.

Car trade balance France, **** - ****, in billions of dollars Source: ****

The * main countries supplying cars by value are Germany (***)

Main countries supplying cars to France France, ****, in Source: ****

On the export side, France's main customers are Germany (***) and Italy.

France's main customer countries France, ****, in Source: ****

We can see thatmost trade, whether import or export, takes place with European partners.

2.1 The French car fleet

The proportion of motorized households in France has increased slightly over the last decade. Indeed, while the proportion of households owning at least one vehicle in **** was **.*%, this proportion will reach **.*% in ****, one of the highest rates ever recorded. According to the ONISR, the * main reasons given by non-motorized households for this situation are: not having a driving license, and not really needing one. As a result, manufacturers of licence-free cars may find a growth driver in these **.*% of households that are not motorized .

Percentage of households owning one or more vehicles France, **** - ****, in Source: ****

In addition, the average age of the car fleet is around *.* years. In addition, the average vehicle ownership period in **** is *.* years, and the average odometer reading is ***,*** km. Second-hand vehicles will account for **.*% of the fleet and **.*% of cars purchased in ****.

It is also interesting to observe the evolution of the shares of the different vehicle ranges in the fleet. The proportion of micro-city cars, which includes the no-license segment, has risen from *% in **** to *% of the fleet in ****, testifying to consumers' growing interest in this car range.

Evolution of the weight of range levels in the passenger car fleet France, **** - ****, in Source: ...

2.2 Unlicensed car registrations

After a drop in the number of new vehicles sold between **** and **** (***), the number of small car registrations remained stable between **** and ****. However, since ****, the market has seen strong growth. Indeed, new small car registrations rose by **% in **** compared to ****. In ****, growth accelerated, with new PSV registrations up **% on ****, despite a recent decline in the fleet in ****.

This significant growth in **** and **** is largely attributable to the introduction of the Citroën Ami, the first licence-free model from the chevron brand (***). Indeed, the model was a runaway success from its launch date, enabling Citroën to become the third-largest manufacturer in the French market in just * year, in ****, and the second-largest in the first quarter of ****[***].

Trend in the number of new licence-free car registrations France, **** - ****, in thousands Source: ****

The trend in the number of new licence-free car registrations between **** and **** reveals several lessons. Firstly, the covid-** crisis had a strong impact on the market during the first containment period, as evidenced by the lowest number of new registrations recorded in April **** out of the * years studied. Moreover,demand seems to beseasonal in June-July and around October. conversely, August sees a sharp drop in the number of new PSV ...

2.3 Obtaining and losing a license: two major determinants of demand

Obtaining a license

Obtaining a license is an important determinant of demand, insofar as the lower the number of licenses issued, the greater the potential customer base for licence-free cars.

The graph below shows the evolution of the number of permits issued by category between **** and ****:

The number of B permits (***). In ****, the health crisis prevented many candidates from taking their license, resulting in a sharp drop in the number of licenses issued. In ****, the number of permits issued reached ***,***, partly offsetting ****, before finally resuming in **** the slow decline begun in ****.

The A* license entitles the holder to drive light motorcycles with a maximum displacement of *** cm³. These machines represent a substitute product, and therefore competition for the PSV market. As shown in the graph below, the number of licenses issued in this category between **** and **** is rising, although this does not represent a definitive trend. However, this increase may also be a sign that road users are moving towards alternatives to the conventional car for their journeys.

As for the A* license, which allows riders to drive motorcycles up to ** kW (***), its issuance rose sharply in **** following the reform of the motorcycle license, before levelling off.

Number of B, A*, ...

2.4 Young people, the new target group for manufacturers of licence-free cars

Since the law lowered the age limit for driving without a license (***), the market for cars without a license has seen its audience get younger[***].

As proof, according to Marie-Laure Nivot, Market Intelligence Manager at AAA Data, registrations for small cars among teenagers (***) are increasing by *% per year. According to this source, licence-free cars are increasingly becoming a substitute for scooters and mopeds for this age group, and have the advantage of being perceived as safer, especially by the parents of these young drivers. These comments are echoed by Jean d'Ambert, Managing Director of Smart Mobility Lab: "We've gone from a dusty vehicle to a trendy object that appeals to a younger clientele than the traditional licence-free car users". According to François Ligier, CEO of the eponymous brand, this is also the fruit of the efforts of manufacturers who "have been working to rejuvenate the image of licence-free cars for many years".

Several figures confirm this rejuvenation of the market's clientele:

Of the **,*** small car drivers insured by Matmut, **% are young people. [***] Of the **,*** vehicles produced by the Ligier group, "**%" are bought by minors, bearing in mind that teenagers are a "priority target" for VSP manufacturers. [***] At Aixam, leader in ...

2.5 Electricity and car-sharing, the future of PSV demand?

The electric motorization of vehicles is a fundamental trend that is set to profoundly change the landscape of the automotive industry, both globally and nationally, over the next decade. However, if we look at consumers' intentions, only around a third intend to buy an electric vehicle in the next few years (***)[***]. This means that **% of French people have no plans to invest in an electric vehicle in the next few years, *% more than the previous year. it should be noted that *% of French people questioned in this survey already own an electric vehicle.

Intention to acquire an electric vehicle in the next few years France, ****, in Source: ****

Purchase and running costs are the main factors holding consumers back, followed by concerns about range and the lack of charging stations. Nevertheless, price and range are two aspects where licence-free cars can stand out from conventional vehicles.

Reasons for refusing to buy an electric car in the next few years France, ****, in Source: ****

Car-sharing is also an important trend in the automotive sector, and one that particularly affects the licence-free car segment (***). In ****, **% of French people would be prepared to stop owning a car and use self-service or car-sharing vehicles. This proportion may ...

3.1 Sector value chain

Below is a simplified value chain for the licence-free car market:

Source: ****

Manufacturers (***) are the players in the first and fourth stages of the above value chain. It is they who design the vehicles in the design office, and assemble the parts. However, the manufacture of components and parts is for the most part outsourced. Among other things, before being assembled into the final product by the automaker, several systems and sub-systems made up of individual parts are themselves assembled by intermediaries, external to the company, called system builders or assemblers. This is followed by the distribution stage, which may be carried out either by the manufacturer's distribution subsidiaries, or by dealers. Final customers are generally private individuals, but may also be companies or car-sharing services.

3.2 The main manufacturers on the market are French

The three manufacturers selling the most small cars in France are French. In fact, in ****, Aixam (***) will dominate the market. note that Ligier sales also include those of the Microcar brand, which Ligier acquired in ****. Citroën completes the podium with **** models sold. It's interesting to note that while Citroën was not present on the PSV market in ****, with the launch of the Citroën Ami the brand succeeded in establishing itself as a must-have manufacturer in less than two years .

Number of cars sold by manufacturer France, **** vs ****, in units Source: ****

In ****, Aixam will account for **% of sales, compared with **.*% for Ligier and **.*% for Citroën. The other manufacturers share the remaining *.*%.

Share of licence-free car sales by manufacturer France, ****, in Source: ****

3.3 Production and distribution

Two types of player can be distinguished in the licence-free car market:

Specialized players (***), producing only licence-free cars and favoring"made in France" production. Major generalist automotive groups (***), who have diversified their offer to reach new customers. The latter prefer to outsource production. Renault withdrew from the market after production of its Twizy was halted, but should soon return with its new Mobilize Duo.

Source: ****

4.1 Offer typology

The table below shows a comparison of several models distributed by different manufacturers. We can see that there are often two types of offer: buying the vehicle or leasing it. Unsurprisingly, electric versions are also more expensive.

We can also point to the move upmarket and diversification of the range, with convertible, coupé and SUV models. Brands also offer extensive vehicle customization .

It's also worth noting that several manufacturers also offer utility ranges (***).

*prices "from

Source: ****

4.2 Supply trends: Rising prices, upscaling, vehicle electrification and car-sharing

Rising prices and a move upmarket

The price of licence-free cars is tending to rise. Indeed, some models are more expensive (***)[***] Secondly, the licence-free car market, like that of the automotive industry as a whole, is also affected by rising raw material prices and the semiconductor crisis, which is leading to difficulties in sourcing parts.

As a result, car prices have soared since the beginning of ****, as shown in the graph below, before stabilizing with a slight decrease during ****.

Evolution of the consumer price index for new and used cars France, **** - ****, in index points (***) Source: ****

Electric cars without a license

A major challenge for all automakers in the automotive market is the electrification of their ranges. This is all the more the case for the market for license-free vehicles, which need less power than conventional cars, while being lighter. Numerous buggy manufacturers have invested in electric vehicles, including Aixam, Citroën and Renault. Ligier has just released one in May ****, called Myli, with *,*** sales announced. [***]

Car-sharing

The Citroën Ami has three distribution channels: purchase, rental and car-sharing, along the lines of what is already well developed in the self-service scooter market. The Citroën Ami self-service car is available ...

5. Regulations

The French market for licence-free cars is mainly governed by European Directive ***/****. The main legislation concerning the vehicle itself is listed below (***):

Unladen weight limited to *** kg Diesel or electric engine limited to * kW Speed must be less than ** km/h Engine capacity must be less than ** cm³. Number of seats limited to * This type of vehicle is exempt from technical inspection

Next, the main legislation concerning the driver is listed below (***):

must be at least ** years old. This age limit was adopted in ****. Before this date, the minimum age was **. hold an AM license or BSR (***) at least for drivers born after January *, ****. Drivers born before this date are exempt from the requirement.

What's more, although you don't need a "B" license to drive a car without a license, the vehicle must still be insured with at least third-party liability coverage. [***]

With regard to traffic, no-license cars are not allowed on freeways or expressways.

Finally, from **** onwards, PSVs will have to undergo regular technical inspections like the rest of the vehicles inspected, to check that they comply with European standards on pollution and road safety. [***]

6. Segmentation

• Bellier Automobiles
• Chatenet
• Aixam
• Ligier Groupe
• Casalini
• Jiayuan
• Microlino
• Kate.tech-Nosmoke
• Voltandgo
• Navya
• Liberty Electric Motion LEM