UK Automotive Businesses Expanding to France: Honing Your International Strategy

If you’re looking to expand your automotive business beyond the UK, then you may already be considering entering the French market. 

Geographical proximity, established trade relationships, and a strong automotive manufacturing sector make it a natural choice for UK businesses seeking to grow beyond the British automotive industry.

However, entering the French market requires careful consideration. 

From complex stringent environmental standards to cultural differences, UK businesses can face many obstacles. And failure to properly address these challenges can result in costly delays, damaged business relationships, and failure to succeed in the market.

In this article, we’ll help you develop a successful strategy for entering the French market. We’ll examine the current state of both British and French automotive industries, explore key regulations and compliance requirements, and provide practical strategies for entering the French market.

Contact clearBorder for personalised advice on exporting to the French automotive market. 

Understanding the French and British Automotive Industries

Current State of the UK Automotive Sector

The automotive industry in the United Kingdom, known for its innovation, quality, and global reach, has long been a cornerstone of the country’s economy. Automotive manufacturing contributes £22 billion value added to the UK economy. And with over 140 countries importing cars manufactured in the UK, the sector makes up 12% of UK exports. Some major players in the UK automotive sector include:

• Jaguar Land Rover: The largest automotive manufacturer in the UK, known for its luxury vehicles and SUVs.
• Nissan: Operates one of Europe’s most efficient car plants in Sunderland.
• BMW: Sells car models like MINI made at its Oxford plant.
• Rolls-Royce: The pinnacle of British luxury automotive manufacturing.
• Vauxhall (owned by Stellantis): Specialises in passenger and commercial vehicle production.

While the UK automotive industry has always been strong, the UK economy has seen significant challenges in recent years.

In 2020, UK car production fell to its lowest level since 1984, with just over 920,000 motor cars produced. New car registrations in the UK also fell by 29.4% in 2020, with 1.63 million new motor vehicles sold.

These challenges in the British motor industry are prompting many businesses to look beyond the UK automotive industry for new opportunities.

Overview of the French Automotive Market

France is Europe’s second-largest automotive market after Germany. In 2024, 1.7 million new passenger cars were registered in the country.

Like many other EU countries, the French market is rapidly embracing electrification, with electric and hybrid vehicles accounting for 26.2% of new car sales in December of 2024.

French consumers favour compact and mid-size cars, with a growing interest in SUVs. In France, there has always been a strong preference for diesel engines, but this preference is shifting towards hybrid and electric powertrains. Luxury and premium brands, including British marques, also have a dedicated following among French consumers.

Why France is an Attractive Market for UK Automotive Businesses

The French automotive market is deeply intertwined with the UK market through shared supply chains and long-standing trade relationships, presenting an attractive expansion opportunity for British businesses.

In addition, France is seeing a rapidly growing demand for electric and hybrid vehicles, which aligns with the UK’s strengths in this sector. France is also at the forefront of new automotive technologies, including self-driving vehicles. This gives UK companies a chance to introduce new products and components to French partners.

There are many opportunities for UK companies to collaborate with established French manufacturers, opening doors to joint ventures, technology sharing, and expanded market access.

These factors, combined with France’s strategic location and strong automotive manufacturing sector, make it an ideal market for UK businesses looking to expand their European presence and offset challenges in the domestic market.

Exporting to the French Market

Regulatory Challenges

Post-Brexit trade regulations have introduced new customs procedures, tariffs, and documentation requirements for UK businesses exporting to France. UK automotive businesses expanding to France must navigate this complex regulatory landscape to ensure smooth cross-border operations.

Cars manufactured in the UK must also comply with European Union and French-specific automotive standards, including safety regulations and type approval processes. Environmental regulations and emissions standards are also more stringent in France, with strict limits on CO2 emissions.

By leveraging clearBorder’s expertise, UK automotive businesses can ensure their products are fully compliant with local regulations, streamlining entry into the French market and minimising regulatory risks.

Key Supply Chain Considerations

Managing cross-border logistics post-Brexit can be a challenge, with new customs procedures, potential tariffs, and additional documentation requirements.

However, UK companies must develop a thorough understanding of these new processes and consider options such as bonded warehouses or free trade zones to minimise delays. Investing in digital solutions for customs declarations and partnering with experienced freight forwarders can also help streamline these operations.

Adapting to local supplier networks in France can reduce transportation costs and improve responsiveness to local market demands. UK businesses should conduct thorough research to identify potential local suppliers, attend industry events to build relationships, and consider establishing a local presence. Ensuring compatibility in terms of quality standards and production processes is also essential when working with French suppliers.

Finally, mitigating risks in the global supply chain is crucial in the automotive industry. UK companies should focus on diversifying their supplier base, implementing robust risk assessment processes, and maintaining buffer stocks of critical components. Developing contingency plans and leveraging technology for real-time supply chain visibility can also help businesses respond quickly to disruptions.

Differences in Culture and Business Etiquette

Successful expansion into the French automotive market requires more than compliance with French regulations. It requires a deep understanding of local business culture and practices. Compared to the UK, French business culture tends to be more formal and hierarchical and places a stronger emphasis on personal relationships and long-term partnerships.

Building trust with local stakeholders is crucial and often requires face-to-face meetings. Businesses from the United Kingdom should adapt their communication style, respecting French business etiquette and language preferences.

Marketing and sales strategies must also resonate with French consumers and their tastes, preferences, and cultural nuances. UK businesses may need to localise product offerings, adapt advertising messages, and leverage local media channels.

By embracing these cultural differences and adapting accordingly, UK automotive businesses can establish strong, lasting relationships in the French market.

Future Trends that Impact Long-Term Strategies

When developing a long-term strategy for market entry, UK automotive businesses must also consider where the industry is heading. For example, the shift towards sustainable and zero-emission vehicles is accelerating, presenting exciting opportunities in electric and hydrogen technologies and reducing opportunities in the sale of petrol or diesel cars or their components.

Emerging technologies like artificial intelligence, advanced driver-assistance systems, and connected vehicles are also reshaping the industry. 

UK companies can also find opportunities from increasing urbanisation, changing consumer behaviour, and the growth of mobility-as-a-service.

UK businesses should align their long-term strategies with these trends to ensure success and sustainability in the French and global automotive markets.

Expand to the French Market with Support from clearBorder

Navigating the complexities of cross-border trade can be a daunting task for UK automotive businesses. However, with the support of clearBorder, you can streamline your expansion into the French market.

At clearBorder, we provide expert guidance on French customs requirements, tariffs, and import and export controls. We also help UK businesses secure reliable freight forwarders and build reliable supply chains with French partners. 

By leveraging clearBorder’s training and consulting services, you can minimise delays, avoid costly fines, and achieve long-term success in the French automotive market.

Contact clearBorder for seamless entry into the French automotive industry.