European recovery takes hold in June due to growing economies image

The auto sales demand across Europe accelerated to its fastest pace in more than half a decade last month, with the continent’s economies expanding and automakers luring customers with a range of new models.

According to a statement issued by the Brussels-based European Automobile Manufacturers’ Association, or ACEA, new car registrations across the region jumped 15 percent to 1.41 million vehicles from 1.23 million units during the same period last year. The increase was the strongest since a 16 percent jump in demand seen back in December 2009 when governments were all offering massive incentives across the region for customers to get rid of older cars in a bid to secure a swift industry recovery from the latest global financial crash. Since 2008, when the world was engulfed in the most recent recession, the economy of the 19 countries using the single European currency is in its longest period of growth and unemployment in the UK is at a seven-year low. “It’s looking good for Europe; there’s a solid upward trend, also partly due to a catch-up effect after demand declined during the financial crisis,” said Frank Biller, an analyst for Germany’s LBBW.

The ACEA decided to more than double its annual car sales goal last week and the increase in demand is contrasting to slowing deliveries in China or the weakness showed by Russia and South America. The industry association, using data from 28 of the 29 European Union nations plus Switzerland, Norway and Iceland has predicted the auto sales would increase by 5 percent in 2015, stronger than a two percent surge envisioned earlier.

Via Bloomberg