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France is a medium-sized market, roughly equivalent to California—much smaller than the US, China or Japan, but larger than many countries.
by AlchemistCamp 6y ago
France is a medium-sized market, roughly equivalent to California—much smaller than the US, China or Japan, but larger than many countries.
- Balgair 6y agoUnless the market size for a population is not proportional to that population, then I'm missing something. France is ~67 million people. California is ~40 million people. There are ~330 million US citizens. So France is ~double California and ~ a fifth of the US.
- redwall_hp 6y agoAnd car companies comply with California's emissions laws rather than miss out on California sales, so it seems like "pulling out" is unlikely.
- cjhopman 6y agoThat's only the case as long as complying with California's emissions laws is not too much harder than what they would otherwise have to comply with. That's a complicated analysis, it's kinda got a bit of prisoner's dilemma to it. As long as companies are following CA's restrictive emissions laws, there's little incentive for other areas to make their own laws more restrictive. If companies started to ignore CA's laws (and not sold there or sold different versions) you should expect other states to start to pass more and more restrictive laws.
- david38 6y agoThere are ten other states that follow California’s regulations, so you’ll lose a lot more than just California.
- foota 6y agoIt depends on what kind of market you're in. California is extremely high income relative to France (or pretty much any country) and so you're likely to see more revenue from there.
- fooker 6y ago>Unless the market size for a population is not proportional to that population It's not. US Population is maybe ~1/4th of India. Apple has a huge market in the US and is relatively niche in India.
- AlchemistCamp 6y agoI was speaking of the relative sizes of the economies, not the populations. Both France and California have a GDP of about 2.7 trillion USD. Interestingly, India's GDP is also at about this level.
- centimeter 6y agoYou must take into account that France is relatively poor compared to America.