The market for licence-free cars - France

Since 2020, the licence-free car market in France has been growing significantly, with registrations of new vehicles up by 17% in 2020 and then by an impressive 47% in 2021 (compared to 2020), despite a slight decrease in 2022. This growth has been largely driven by the entrance of Citroën with its Ami model, which quickly rose to prominence in the market. Moreover, the market has seen a trend towards electric and higher-end models, with Aixam, Citroën, and the Ligier Group leading the charge. The market has also observed a shift towards younger customers after the minimum driving age for these vehicles dropped to 14 years old in 2018.

In terms of market size, by 2023, with an average vehicle price of 15,000 euros, the estimated market size reaches approximately 397.5 million euros. The trade balance for "Passenger cars and other motor vehicles principally designed for the transport of less than 10 persons" has remained in deficit for France, standing at -$16.548 billion in 2022, a slight improvement from -$19.365 billion in 2021. French exports mainly go to European countries, with Germany, Belgium, and Italy being key trade partners.

Exploring the Dynamics of the Licence-Free Car Market in France

The licence-free car market in France, also referred to as the voiturette or VSP market, has been witnessing robust growth recently. With over half of the European registrations, the country is at the forefront of this market segment. Registrations skyrocketed by 96% compared to 2019 figures, reaching approximately 26,500 new VSP registrations in 2023. This surge in demand comes from the younger, urbane demographic, which differs from the traditional retired, rural buyer profile of the past. The market has also seen a rising interest in electric models that coincide with the global trend towards eco-friendly transportation options.

The clear market leader is Aixam, shadowed by Ligier Group which offers Ligier and Microcar brands, and trailed by Citroën, which has recently entered the market with its Ami model. Beyond these, the market features various other competitors.

In the realm of regulations, the European Directive 168/2013 chiefly governs the manufacture and use of these vehicles, stipulating standards for vehicle weight and power, speed limits, and licensing requirements for drivers. As for the market's positioning, household car ownership has increased slightly over the last decade. The percentage of households owning at least one vehicle went up to around 85.8% in 2021, providing a growth opportunity for VSP manufacturers considering that almost 14.2% of households are non-motorized.

The recent expansion of new VSP registrations can be partly attributed to the Citroën Ami's launch. There's a prominent seasonal trend in registrations, with peaks around June-July and October and a significant drop in August. While the primary customer base for these vehicles has traditionally been older, there's a growing trend among younger drivers. Registrations among teenagers have been increasing annually by about 5%.

The French car fleet is aging, with the average vehicle being around 9.4 years old. Notably, the trend towards micro-city cars has risen, blooming from 2% to 6% of the fleet in about two decades. Moreover, manufacturers are targeting non-motorized households, finding a potential niche as the number of license holders among the youth has been declining, with only 69% of 18-24 year-olds having a driving license in 2022 compared to 77% two decades ago. The introduction of electric vehicles brings significant potential in the sector. 

Key Players in the French License-Free Car Market

The French license-free car or VSP (voiture sans permis) market is a niche yet dynamic segment within the automotive industry. Characterized by lightweight vehicles that do not require a standard driver's license to operate, the market has a few prominent manufacturers that dominate the scene.

• Aixam : Standing tall as the market leader in France and indeed in Europe, Aixam has secured a robust position in the license-free car sector. The brand is known for its extensive range of models, and its production strongly emphasizes the "made in France" philosophy, catering to consumers who prefer domestically produced vehicles. Aixam’s focus spans from traditional internal combustion engine models to cutting-edge electric vehicles, accommodating a diverse range of customer preferences.

• Ligier Group : Following closely behind Aixam, the Ligier Group has been a staple in the VSP market with two renowned brands under its umbrella: Ligier and Microcar. The company has enjoyed long-standing success, with a distinguished history that is marked by consistent innovation and an upmarket strategy. Ligier Group is also taking strides in the electric vehicle space with their recent electric model Myli, signaling a forward-looking approach in their product development.

• Stellantis (Citroën) : A relative newcomer to the VSP market, Stellantis, via its Citroën brand, has made a remarkable entry with the Citroën Ami. This model has quickly become a hit, offering a fresh take on urban mobility that resonates with younger drivers and those interested in sustainable transportation solutions. The Ami's success illustrates Stellantis’s ability to disrupt established markets by leveraging its extensive resources and automotive expertise.

The VSP market also includes players like Renault, known for its now-discontinued Twizy but is expected to make a comeback with the Mobilize Duo.

Other smaller but notable French companies like Chatenet and Bellier Automobiles contribute to the market diversity with their unique offerings.

Additionally, international manufacturers such as Italian Casalini and Tezzari, along with the Chinese brand Jiayuan, add a global flavor to the market, although their presence is less pronounced compared to the dominant French companies.

These main players exemplify the varying approaches to capturing the VSP market, from specialized domestic production to adaptation by larger automotive groups. This interesting mix of companies, from longstanding producers to newer entrants, showcases a market that is both competitive and increasingly relevant in an age where urban mobility and alternative driving solutions are

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 05/02/2024

Summary and extracts

List of charts

• Global mini-car market size
• Worldwide sales of minicars by engine type
• Change in the proportion of households owning one or more vehicles
• Evolution of the weight of range levels in the passenger car fleet
• Number of new license-free car registrations
• Number of registrations of used no-license vehicles
• Number of licence-free car registrations by month
• Breakdown of invalidated licenses by gender
• Number of invalidated licenses
• Number of points withdrawn
• Number of B, A1, A2 licenses issued
• Number of cars sold by manufacturer
• Manufacturers' share of licence-free car sales
• Number of licence-free cars sold by manufacturers
• Consumer price index for new and used cars
• Intention to acquire an electric vehicle in the next few years
• Reasons for not buying an electric car in the next few years
• Answer to the question: Today, would you be prepared to stop owning a car and use self-service or rental cars?
• Number of individuals by age category
• Car trade balance
• top 10 countries supplying cars to France
• france's top 10 customer countries