A surge in UK auto sales, a government incentive program in Spain and an extra working day boosted Europe’s new car market in September, signaling that maybe demand is slowly bottoming out after lows not seen in over 20 years.
Automotive industry association ACEA said today that new car registrations in Europe climbed 5.5% to 1.19 million vehicles in September, only the third month a gain was recorded in the past two years. That narrowed the decline so far this year to 4%, for total sales of 9.34 million cars.
Gross domestic product in the 17 European Union countries using the euro rose in the second quarter after the longest recession since the currency was created in 1999. Renault and Daimler posted the biggest car-sales gains last month. Demand surged 29% in Spain because of government-backed discounts of as much as 2,000 euros ($2,700) on vehicle trade-ins. Dealer rebates in Germany were the highest in three months.
But within the European Union, the level of demand was the second lowest on record for the month of September since it began tabulating results for the 27 member states in 2003.
“Car sales in the EU are showing signs of improvement, indicating that the worst is behind us,” said Peter Fuss, a partner at Ernst & Young consulting company in Frankfurt. “The sales, however, continue to be artificially boosted by huge discounts and self-registrations by dealers.”
“The western European auto market continued on its course to recovery in September,” said the German auto industry association VDA.
The car market’s increase last month, which included one more working day than a year earlier, was the biggest since a 7.8% jump in August 2011. It was the third gain this year, following growth of 4.9% in July and 1.7% in April that marked the first advance in 19 months. Registrations in Europe are still on track to reach a two-decade low this year in the sixth consecutive annual contraction.
Via Bloomberg, Reuters
) - Wednesday, October 16th, 2013 - filed under Industry
, Sales Reports
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