The French automotive market

As Europe's second-largest car market behind Germany, the French market is particularly attractive. It has a strong national industry with renowned manufacturers such as Renault, Peugeot, and Citroën. His aging vehicle fleet favors the renewal. It abounds with a growing demand for electric and hybrid vehicles. The main challenges that it must face are the intense competition from foreign automakers and the internal market saturation. It is in the midst of a transition towards electric and hybrid vehicles that appears as a challenge for many automakers. According to a report by the PFA (the French platform of automotive sector), based on license plates number registered in 2023, there were 1 774 729 new car matriculations. It represents an increase of 16.07 % compared to the previous year. Renault is the number-one brand in France. Peugeot comes second and Dacia third. The top 10 models registered in 2023 include the CLIO V, the 208, the C3, the Captur, the Duster and the Fiat 500. 

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The Swedish automotive market

Being a stable market with a high consumer’spropensity to buy new cars, Sweden offers a wide range of sports cars and supercars at very attractive prices. Mostly thanks to the good Swedish standard of living, its second-hand car market possesses recent models. We can notice a clear consumer preference for premium vehicles and SUV. What’s more, the sector is impacted by a strong environmental awareness and a growing demand for electric and hybrid vehicles. However, its internal market is limited due to its dependence on exports and the relatively high average cost of vehicles. In 2022, the country registered approximately 300,000 new vehicles sales. The most popular brands were Volvo, Volkswagen, and Peugeot. The Swedish electric and hybrid cars market is one of the biggest in Europe, with more than 100,000 vehicles sold in 2022. Finally, the covid crisis has made the car market even more attractive, with a value-added tax reduced to 17%. 

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Business Relations between France and Sweden 

Sweden represents a huge market for French Automobile exports. Opportunities and challenges of French and Swedish market can be summarized in a sentence: France exports around 50,000 vehicles to Sweden every year and collaborates in transport electrification. Indeed, French automakers have taken opportunities in Sweden, particularly in electric and hybrid cars field. Nevertheless, they must face challenges such as a huge competition. French automakers working in Sweden must satisfy a high electric and hybrid vehicles demand. French brands enjoy a positive image and have a relevant expertise in commercial vehicles. 

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Importing vehicles to France from Sweden 

To import a vehicle to France from Sweden, you will need a valid roadworthiness test (if the car has been on the road for more than four years) and a European Certificate of Conformity (COC). This document contains technical information about the vehicle and must be requested from your local prefecture, either in person or via an online procedure. To do this, it’s necessary to have a foreign vehicle registration document to order the certificate online. Fifteen days are required to obtain the certificate. For his part, the future owner must obtain what we call a “quitus fiscal”. Also known as the “tax certificate”, this document attests that the vehicle imported from Sweden can be registered in France and that owner's tax affairs are in order. This certificate, provided by the tax authorities, enables the owner to prove that he is up to date in French value added tax (TVA) affairs. It is issued free of charge for used vehicles (not imported from Switzerland), although a tax corresponding to French value added tax can be paid if the Swedish vehicle is new (if it has less than 6,000 km or less than six months old). Lastly, you do not have to go through customs. 

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The Danish automotive market 

According to Euronews, 2021 was a record year for “green” vehicles. For the first time in this country, sales of electric and hybrid cars have overtaken those of diesel vehicles. 27% of December sales were electric cars (4,765 cars) and plug-in hybrids represented 31% of this month sales (5,509 cars). Regarding prices, we can mention that a 100% matriculation tax is appliqued to new cars worth more than DKK 150,000 (around €20,000). The Danish value added tax is also charged on the purchase price, at a rate of 25%. The Danish government also desires all new cars sold to be electric by 2030. Financial incentives are offered to buyers of electric vehicles, such as the exemption from matriculation tax and the free access to public charging stations. From the Tesla Mag UK, the most popular models in Denmark in 2023 were the Tesla Model Y, Peugeot’s 208, Ford’s Kuga, Opel’s Corsa and the Citroën’s C3. However, high vehicle prices are a major barrier to the adoption of electric vehicles. Recharge infrastructures are still under development, particularly in rural areas. The global shortage of microchips also had an impact on new vehicles deliveries. Despite this, the government and automakers massively invest in electric and hybrid cars. Consumers are increasingly aware of environmental and economic benefits of these vehicles. 

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Importing vehicles to France from Denmark 

In the same way as for Sweden, to import a vehicle to France from Denmark, you will need a valid roadworthiness test (if the car has been on the road for more than four years) and a European Certificate of Conformity (COC). You also have to ask for a WW registration plate to the prefecture which will enable you to drive during four months with a Danish registration plate. Then, the final registration must be done. The French value added tax (TVA) which corresponds to 20% is payable when you import. Please note: If you buy the vehicle excluding the value added tax in Denmark, you will not pay the TVA twice. For second-hand vehicles, the value added tax is already paid in the home country, so you don't have to pay it in France. In any case, the vehicle must comply with French safety standards. Modifications can be made, such as the installation of fog lights or a kilometer speedometer.

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Autolity as an export vehicle supplier 

Autolity stands out as a major supplier of affordable cars for export to Sweden and Denmark. Thanks to its user-friendly platform, Autolity offers an easy access to a vast network of over 15,000 partners across Europe. This collaboration enables seamless export to Sweden and Denmark, providing a complete solution for professionals looking to expand their business in these dynamic European markets.

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