French Auto Sales Down 9% in June image

Auto sales in France dropped 9% in June and more than 11% during the first six months of the year.

In June new car registrations in France fell 9% to 190, 199 vehicles, compared with 208, 909 units in June last year, according to CCFA. Analysts predict that auto industry will drop around 8% this year, saying that the market is close to the bottom of the slump. Although sales dropped in June, it is better compared with the fall of 10.3% in May.

The increased level of unemployment, as well as the sluggish household budgets, have kept customers away from big ticket purchases. PSA Peugeot Citroen has seen its sales falling 9.5% in June, while rival Renault managed to slow the decline to only 3.6% from 16.5% in May. GM’s sales dropped 31.4%, the worst decline among foreign automakers, while Fiat increased 20.4%, thanks to high demand for the retro-styled 500 model.

New car registrations in France have fallen 10.3% in May, with Citroen and Renault being the worst affected, down 16.5% and 14.5% respectively. France, which is the second largest economy in Europe, fell into recession during the first quarter of the year.

Source: yahoo.com