Western European car sales rise 4% in June, led by southern markets
New car registrations in Western Europe reached 1.15 million in June 2014, with strong gains in Spain and the UK offsetting a dip in Germany.
New car sales across Western Europe rose by 4% in June 2014, reaching 1.15 million units, according to figures compiled by LMC Automotive. The increase was driven by robust demand in southern markets, which balanced out a decline in Germany, the region's largest market.
LMC Automotive reported that the region's sales growth for the first six months of 2014 stood at 5%, with the annualised sales rate now projected at 11.93 million for the full year. This would represent a 3.3% rise over 2013’s total of 11.54 million units. The data covers 13 of the 17 Western European countries directly, with projections used for Austria, Denmark, Luxembourg and Switzerland.
Southern Europe outpaces Germany
While Germany normally anchors the region’s sales, June saw registrations there slip by 2%. The German VDA auto industry association attributed the drop to fewer working days in the month, suggesting underlying demand remained steady. In contrast, Spain recorded a 24% surge in new car deliveries compared to June 2013, the strongest performance among major markets. The UK continued its run of positive figures, posting a 6% rise, while Italy and France grew by 4% and 3% respectively.
The performance in Spain and the UK was enough to lift the region as a whole despite Germany’s slip. Southern Europe’s recovery has been critical, with pent-up demand after years of suppressed sales during the eurozone crisis. France and Italy’s modest gains also contributed to the region’s improvement.
First half trends and outlook
The 4% June increase brought the year-to-date total to a 5% gain across Western Europe. LMC Automotive’s forecast for 2014 now stands at 11.93 million units, reflecting cautious optimism for a slow but steady recovery. The pace remains well below pre-crisis levels, but the direction is positive. The industry’s revival in southern markets is helping to offset weaker results in Germany and other northern countries.
- Germany: June sales down 2% (VDA cites fewer working days)
- Spain: June sales up 24% year-on-year
- UK: June sales up 6%
- Italy: June sales up 4%
- France: June sales up 3%
For comparison with other recent sales trends, seeGM June Sales Climb 16% to Highest Level Since 2008.
Implications for manufacturers and dealers
Manufacturers with strong positions in Spain and the UK benefited most from June’s results, while those heavily exposed to Germany saw a more subdued month. Dealers in southern markets are seeing renewed showroom traffic, though the overall pace of recovery remains modest compared to historic highs. The uptick in sales offers some relief to plants and suppliers across the region, but a return to pre-crisis volumes is still distant.
