French automotive industry set for a stable 2004 17th December 2003

Sales in the French automotive market are set to rise by around one per cent next year following a difficult 2003, according to market analysts.

The Observatoire de l'Automobile is anticipating a return to stability in the market, estimating that French motorists will buy 2.02 million cars in 2004, slightly above this year's 2 million cars.

The figures are the main basis for the analysts' prediction of a minor recovery in Europe, which will see just over 14 million units sold.

With the French currently one of the more hesitant markets, a return to stability is a welcome sign of the wider recovery on the continent.

However, Pierre Bourgeois, the Observatoire's director, told Reuters that the recovery would be tempered by the poor economic climate.

'There will not be an economic recovery in France before the first quarter and the car market will follow. The first quarter will not be very strong,' he said.

The Observatoire said it expected the US car market to experience a similar rate of development, growing by one per cent in 2004.


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