PARIS, FRANCE: New car sales in Europe rose by 6.4% in September, the thirteenth month of increases as a recovery in the market spreads across the continent.
Car sales in Europe have risen with Spain leading the way and recording an impressive 26.2% rise year-on-year in September. Image:Business Recorder
The European Automobile Manufacturers Association said substantial growth prevailed in all major markets in the EU in September, with nearly 1.24m new cars sold.
Spain led the way, with sales rising by 26.2% compared with September last year, thanks mainly to its "cash-for-clunkers" programme. The country's economy is gradually recovering after six years of crisis, contributing to the rise.
For the January to September period, sales climbed 6.1 percent to 9.57m vehicles.
Spain also led the recovery for the nine-month period among the big European economies with a 17.2% increase, followed by Britain where sales were up by 9.1%.
Despite anaemic growth in their economies, car sales in Italy still rose by 3.6% while in Germany they were up by 2.9% and in France by 2.1%.
Vehicle sales are still far from pre-crisis levels, however, after suffering six years of declines and analysts warned stalling economic growth in Europe could put the brakes on car sales.
Old cars stimulate demand for new ones
ACEA's Jean-Francois Belorgey says that the economic fundamentals in Europe haven't changed significantly yet but there are signs of greater prosperity, economic growth and improved employment levels. Image: L'Usine Nouvelle
Jean-Francois Belorgey, from EY, said there were not many objective reasons (for the increase) except for the age of the fleet because "he economic fundamentals have not suddenly improved.
The 1.24 m vehicles sold in September 2014 is some way off the 1.4m cars sold in sold in September 2006.
Volkswagen is extending its lead in European sales, with a 7.9% increase over the nine months reaching 2.4m vehicles and expanding its market share from 24.8% to 25.2%.
France's PSA Group, which makes Peugeot and Citroen vehicles, saw its sales rise 4.8% to 1.0m vehicles, although its market share slipped from 11.0% to 10.9%.
"The (Peugeot) 308, which is the range where where the company makes good profits, has found its niche," said Belorgey. The new model helped Peugeot's sales rise by 10.6% jump in September.
Renault was in third place, expanding its market share from 8.8% to 9.6% thanks to the recent 15.9% spike in sales when it sold 921,038 vehicles.
Sales of its low-cost Dacia lineup jumped by 29.2%.
Sales in the GM group were down by 3.3% after the US group chose to phase out its Chevrolet brand in Europe. Its German unit Opel, beat the average with an 8.2% increase selling 671,198 vehicles.
Source: AFP via I-Net Bridge