European auto recovery still strong in October image

European demand finally picked up in all major western markets, save for France in October, with overall new car registrations climbing 5.5% to decrease the deep uncertainties that plagued the region’s economic forecasts.

Industry data released yesterday showed that deliveries in October grew to 1.03 million units from the same period in 2013 when they stood at 974,640 cars, according to figures gathered by consulting firm LMC Automotive. During October, the annualized selling rate, adjusted for seasonal changes increased 3.2% from September, to 12.6 million autos for the whole year.

LMC analyst Jonathon Poskitt said that even as the economic outlook is growing increasingly gloomy, “the car market posted a solid improvement.” Even so, the mild improvement in auto demand across Europe that started in 2014 is way behind what automakers posted in the peak days before the financial crisis – the six-year slump in demand led to a very low sales basis last year.

France was the only dark spot for October, after the stagnant overall economy dented auto demand and the country posted a 3.8% registrations decline last month. The SAAR for the country also had a steep, 6.4% drop from the figures posted in September. Meanwhile, the annualized selling threshold went up in Germany by 4.1%, by 3.6% in the United Kingdom, a good 8.8% in Italy and jumped 12.1% in Spain.

Via Reuters