Thanks to incentive programs in several European Union Member States, Europe notched a 2.4 percent new car sale increase in June, marking the first sales increase in 14 months. More than 10 EU Member States have adopted scrappage laws, paving the way for a possible market rebound in the next few months.
According to the European Automobile Manufacturers’ Association, the European market, as a whole, accounted for 1,461,859 units in June, marking a 2.4 percent increase over June 2008. Despite the slight increase, first half European sales are down 11 percent to 7,425,762 units.
Sales in Western Europe were up even further in June, climbing 4.6 percent. Germany, Italy and France led the way with sales increases of 40.5 percent, 12.4 percent and 7 percent, respectively. Spain and Great Britain posted moderate sales declines of about 16 percent, buoyed by recently launched scrappage laws.
In Eastern Europe, new car sales fell by a significant 26 percent. Only two countries managed to post sales increases – Slovakia at 57.4 percent and Czech Republic at 18 percent – while most other states witnessed double digit declines. Latvia was the biggest looser, seeing a sale drop of a staggering 72.6 percent.
Although June proved to be a positive month for several European countries, Europe isn’t out of the woods yet. With some established and emerging markets still back tracking to the tune of 15 percent or more, rock bottom is still likely months away. And with incentives programs slated to expire by years end, new car sales could quickly return to their record low levels.
