European car sales back on the fast track to growth

Car sales in Europe is back on the growth track for the first time in 18 months. Industry Association ACEA reports that car registration have risen by 1.8 percent since last September which in figure converts to 1.08 million. This figure was for the month of April which though is higher compared to the same period last year but is yet the third lowest figure for the month of April till now.

Sales of cars in the UK in the month of April touched a high of 15 percent which is the best April figure over a five year span. It is the UK figures alone which have provided the good results for the European car sales. Other factors which helped in the rise of sales is the Easter holiday being in March this year due which April had the two extra days.

Unemployment, economic recession and such related factors played a major role for sales of cars all over Europe being at its lowest last year over figures compared for last 17 years. Sales figures last year fell by 7 percent compared to sales over same period of the year just a year before that. Low income group people just could not afford to buy a new car affecting the sales of smaller car makers.

Peugeot sales marked a fall by 7.5 percent and Citroen was down by 13 percent. Fiat had a fall of 4 percent and its Alfa Romeo in particular had sales cut down by a third. Volkswagen which owns the Seat brand however saw rise in sales by 35 percent and its major market is Spain which alone recorded a 10.8 percent rise in sales.

Sales figures indicated a regional trend as Germany too saw car sales rise 3.8 percent. However, in neighbouring France, sales fell by 5.3 percent while Italy too recorded new registrations falling by 10.8 percent.

Mike Baunton, the interim Chief Executive at SMMT expressed happiness at the rise of registration figures for new cars in Europe even though the figures were not very high. Consumer confidence in dealers and the attractive finance schemes, he mentioned were the reason for this positive mood in demand for cars.