The spare parts market - France (2024)

1.2 The global automotive aftermarket

The global automotive parts market, valued at ***.* billion USD in ****, shows steady growth, reaching ****.** billion USD by early ****. This expansion probably reflects increased demand and technological innovations.

The size of the global automotive parts market World, ****-****, in billions of USD Source: ****

Asia-Pacific was the largest automotive parts market region in ****. Western Europe was the second largest market for automotive parts. On the other hand, demand for electric vehicles is increasing, which is likely to disrupt the automotive market value chain. The electrification of cars also means that components will have to be adapted and designed to meet the requirements of electric cars. And as electric vehicles are manufactured with a third of the number of components of internal combustion engine (***) cars, there will be less collaboration between a carmaker and parts suppliers. This will reduce the calibration between vehicle and component, enabling parts suppliers to develop products with greater autonomy.

1.3 French market size according to INSEE nomenclature

To calculate the size of the French market, we will refer to the analysis of NAF code **.**Z"Retail sale of automotive equipment".

This sub-class includes :

Retail sale of accessories, spare parts and miscellaneous equipment for motor vehicles retail sale of tires

Calculation method: INSEE provides us with the sector's sales base *** in ****. This amounts to *.*** billion euros. We also have access to the evolution of this index, month after month. Thus, by annualizing the averages of these indices, relative to **** sales, we can calculate the evolution of sales in France with the following formula: Sales **** * (***)

Market size of NAF code **.**Z "Retail sale of automotive equipment" France, **** - ****, in billions of euros Source: ****

The French automotive equipment retail market (***) has grown steadily from *.*** billion euros in **** to *.*** billion euros in ****, despite a slight decline in **** due to the pandemic. Thus, for the first time in ** years, the market is recording a drop in sales of around *. *%. But the mechanical rebound of the sector is real, with sales reaching a record high since ****. Indeed, the post-pandemic recovery has been marked by strong demand in **** and ****: in ****, the market exceeds * billion euros to reach *.*** billion euros . This represents an increase of over ...

1.5 French foreign trade according to French Customs

To evaluate French foreign trade, we have used the French customs database. The graphs below are based on an analysis of the following code:

**** - Parts and accessories of tractors, vehicles for the transport of >= ** persons, including the driver, passenger cars, vehicles for the transport of goods and special-purpose vehicles

The graph below shows that France went from being a net exporter to a net importer in ****, with a coverage rate which, despite an increase in ****, seems to be on a downward trend.

Exports, imports and coverage rate (***) France, ****-****, in billions of euros Source: ****

Between **** and ****, French exports of item **** fell from €**.* to €** billion, while imports rose from €**.* to €** billion, leading to a deterioration in the coverage rate from ***.*% to **.*%. This trend reflects a weakening of the competitiveness of French exports in relation to import growth, signalling potential challenges for domestic industry.

In ****, the majority of French automotive parts exports went toGermany (***) extends to the rest of the world, indicating partial geographic diversification.

Breakdown of exports in **** France, ****, in billions of euros

The same applies to imports, as shown in the graph below, so when it comes to the aftermarket, we're talking more about intra-European than global trade.

Breakdown ...

2.1 The business of car repair garages in France

After rebounding by **.*% in ****, auto repair garage activity began **** with a *.*% decline in the cumulative January-February period. [***]

Change in auto repair garage activity between March **** and February **** France, ****-****, % [Largus Source: ****

According to the Observatoire d'activité MRA AM Today/EBP Méca, activity in automotive repair garages has begun **** with a downturn.after a *.*% decline in January, garages saw their business fall by *.*% . Over the first nine weeks of the year, the Observatory thus notes a cumulative decline in repairer activity of *.*%, compared to the +*. *% recorded in the first two months of ****.

Trend in garage sales, by activity France, ****-****, in Source: ****

For ****, although the mechanical segment continued to decline, due in particular to a drop in parts-related sales, the bodywork segment was able to pull business upwards, with a notable +*% increase in sales.

2.2 Used vehicles are on a roll

In ****, the French automotive market experienced a year of tensions. The used vehicle(***) market was heavily impacted, with transactions falling to *.** million cars, a level equivalent to ****.

The main factors shaking up consumer habits include the strong growth of electric vehicles on the new vehicle (***), consumer confusion between climate injunctions and purchasing power, and the entry of Chinese brands into the electric VN market.

An analysis of key market figures for **** shows that the sharp drop in new vehicle sales in **** (***) will have an impact on the electric vehicle fleet in ****. e in **** on the used vehicle market, with a **.*% drop compared to ****, bringing used vehicle sales back to their **** level of *.** million[***].

Comparison of sales by motorization (***) France, ****, % (***) Source: ****

By ****, the French automotive market has undergone a transition to more environmentally-friendly powertrains, with notable growth in sales of hybrid (***) vehicles. Although petrol engines remain the best-selling engines, their market share has fallen by **%. By contrast, diesel engines fell by **%, accounting for just **% of sales, compared with **% in ****.

The used car market recorded a significant drop in ****, with *.* million cars sold, a fall of **.*%. Diesel cars continue to dominate, accounting for **% of sales but down **%. Sales of gasoline-powered cars also fell ...

2.3 The shift in demand for auto parts with the arrival of electric cars

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.

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

3.1 Spare parts industry value chain in France

In France, there are two main types of auto parts supplier:

Generalists (***). Vehicle assembly and maintenance are secondary activities. Highly sought-after by customers, their sales are much higher than those of specialists. Specialists (***). Their strategy is to diversify in order to increase their volume of business. Assembly and maintenance make up the bulk of their business. Product sales account for only **% of their turnover.

But the value chain is more complex than that, with many players involved in the parts chain, from manufacture to sale. Automotive spare parts are components designed for vehicle maintenance and repair. Manufactured by OEMs or their subcontractors, these parts and equipment are distributed to automotive repairers by automakers or independent distributors.

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Source: ****

3.2 Number of establishments and employees in France

The graph below shows a fairly proportional increase in the number of companies and employees over the years. As a result, the market is becoming more fragmented than concentrated. There are more and more companies(***)

Number of establishments and number of employees according to INSEE nomenclature France, ****-****, in units Source: ****

On the other hand, from a regional point of view, the French market attracts the most companies to Auvergne-Rhône Alpes and Île-de-France. With *** companies, Auvergne-Rhône Alpes, for example, will have more than ** times as many companies as Corsica in ****. Nevertheless, the graph shows a relatively even distribution in southern France and the north-east. The North-West of France is somewhat neglected.

3.3 Production

French auto parts production by type of part France, ****/****/****, € billion Source: ****

French auto parts production shows significant variations in value, with other parts and accessories leading the way at €*.*** billion, followed by gearboxes at €*.*** billion. Airbags, on the other hand, record the lowest output at €*.*** billion, reflecting a different priority in the manufacture of automotive components.

French auto parts production by type of part France, ****/****/****, € billion Source: ****

French auto parts production also shows strong variability in volume, with brakes and servo-brakes leading the way at ***.*** million units, indicating high demand for these safety-critical components. conversely, production of radiators was much lower, at *.*** million units.

4.1 Typology of supply: automotive parts players in France

Source: ****

4.2 Sector price analysis

According to SRA data, the price of car parts has risen by almost **% this year. This rise is attributed to inflation, shortages of components, particularly electronic chips, and geopolitical tensions. Garage owners are the first to be affected, but a comparison between distributors and OEMs helps to reduce costs[***].

Unlike cars, the price of car parts is not easily accessible, and is usually discovered when a quote is requested from the garage. The SRA regularly analyzes price trends for a basket of spare parts, including around sixty items per model (***), without including major components such as the engine, turbo or gearbox. The purpose of this analysis is to assess the current financial consequences in the event of an accident.

A price increase in this basket is often reflected in insurance premiums, as these repairs, although covered by insurance, influence overall costs. In ****, spare parts prices rose by an average of *.**%, outstripping both historical trends and general inflation. The SRA adjusts these figures by taking into account the frequency of parts replacement and the representativeness of models. Including new models and price variations due to generation changes, the cost of parts has risen by *.*% according to the SRA [***].

Several factors explain this ...

4.3 Trends in garage prices

According to iDGarages.com's **** repair barometer, price differentials between garages continue to narrow between regions in mainland France. This trend is being driven by the effects of the covid-** pandemic, which has also led to a rise in the price of mechanical parts.

In ****, automotive repair prices will have risen by an average of +**. *% compared with ****, mainly due to higher parts prices, particularly for brakes, clutches, timing gears and shock absorbers. In contrast, garage labor costs have risen more moderately, by +*.*% year-on-year. This year, Burgundy-Franche-Comté becomes the least expensive region to service a vehicle, whileÎle-de-France becomes the most expensive.

Jonathan Bloch, CEO ofidGarages.com, explains that services involving parts changes have seen the biggest price increases, due to rising production costs. Garage quotations were impacted, while labor-based services saw more moderate increases, such as air-conditioning overhaul (***). Garages have adjusted their labor rates to avoid defects in vehicle maintenance.

Source: ****

5.1 Spare parts regulations according to the French Ministry of the Economy

Obligations to provide information on the availability of spare parts

Obligations to provide information on the availability of spare parts are set out in Article L. ***-* of the French Consumer Code.

The provisions of the new article L. ***-* of the French Consumer Code introduce a dual obligation to provide information on the availability period or date of spare parts. importer to the seller once the latter has undertaken to supply the parts, and secondly, by requiring the latter to pass on this information to the consumer.

These information obligations concern contracts other than those concluded at a distance or off-premises, and relate to information at the point of sale prior to the conclusion of a contract or an act of purchase. They do not therefore have to appear on the websites of professional sellers.

In fact, the provisions of Directive no. ****/**/EU of October **, **** laying down pre-contractual information obligations for distance sellers are maximum harmonization, meaning that Member States may not impose on these professionals more precise requirements in this area than those set out in the Community text, even in the interests of consumers. This directive makes no provision for consumer information on spare parts.

Nevertheless, since the ...

5.2 Towards a new start for the aftermarket in 2023

In ****, France is still the only country in Europe where automakers have a monopoly on the auto parts market. In other words, if you want to change a part on your vehicle, you have to order it from the manufacturer. A measure denounced for several years by the FEDA (***)

In August ****, after a third attempt, the French Constitutional Council finally approved the measure. This decision will therefore apply to window construction, where the choice of manufacturer will be totally free. As for headlight and rearview mirror replacement, or any other visible accessory, the monopoly will be reduced.

But the Fédération de la distribution d'automobile has no intention of stopping there. Indeed, Mathieu Sérégan has declared that the FEDA will turn to the European Commission to obtain "harmonization between the different countries of Europe", for the total abandonment of the manufacturers' monopoly.

This measure will open up the market to competition, which in turn will drive down prices. In fact, opening up the market to competition should lead to a *-**% drop in the price of the auto parts covered by the measure. This will offset a price increase of **% over three years.

The "Climate and Resilience" law ...

6.1 Segmentation: sales in France

• Norauto
• Mobivia Groupe (Norauto, Midas)
• Feu Vert
• Mondial Pare-Brise
• Glass Auto service
• Spareka
• Oscaro.com (D'Ieteren Groupe)
• AD Autodistribution Groupe (D'Ieteren Groupe)
• TVH (D'Ieteren Groupe)
• Parts Holding Europe - Auto Distribution (D'Ieteren Groupe)
• Roady (ITM Intermarché)
• Kramp
• Vapormatic
• Espace Emeraude
• Promodis
• Global Auto Pieces
• Landa Parts
• Dubreuil groupe
• Kheoos
• A2Mac1
• Optym-Ha
• Impex
• Alliance Automotive Groupe
• Aniel Marketplace
• Opisto
• Caréco
• GPA 26
• IDLP
• Chollet