Demand rose 11.2%, reflecting the ongoing recovery in the market. Despite August being typically one of the weakest months for registrations, the month saw continued growth in all major markets. Registrations in Spain (+23.3%), Italy (+10.6%), France (+10.0%), the UK (+9.6%) and Germany (+6.2%) increased compared to August 2014. Across the region, new passenger car registrations totalled 744,799 units.

Over eight months in 2015, new passenger car registrations increased 8.6%, surpassing 9 million units. All major markets posted growth, contributing to the overall upturn of the EU market over the period. Southern European countries in particular are enjoying strong growth, with Spain (+22.3%) and Italy (+15.0%) posting double-digit percentage gains, followed by the UK (+6.7%), France (+5.9%) and Germany (+5.6%).

Commenting on the results, IHS Automotive highlighted that summer months are typically a low activity period for car sales in Europe as this is when many potential consumers take holidays, and this is underlined by the latest results to some degree. However, Carlos Da Silva, manager for the company’s European light-vehicle sales forecast, points out that the European passenger car market has posted healthy figures in both July and August that have enabled the region to remain on a very positive growth path.

He has said that "this normally indicates that the overall trend is quite solid since it is not affected by what could become a seasonal disturbance in a more shaky environment" before adding that it "is all the more positive since the comparison base was not particularly favourable," with sales already on a positive path during the same month a year ago.

Mr Da Silva also noted that more importantly "this good performance came right in the wake of the latest Greek crisis episode which might have brought back some fear within European minds," but as anticipated it barely registered in the wider market.

Nevertheless, he adds that it may be a little soon to see the full effect at the registration level yet but we are quite confident that no dramatic turbulences are in sight, although the situation in the Greek market itself is another story: after collapsing in July with a fall of around 30% y/y, it seemed to rally again in August, although this might just be a hiccup before things take a turn for the worse.

Even so, Mr Da Silva says that the European market is clearly benefiting from the release of pent-up demand in the region. Although this is mostly from the fleet and company car side of the market, he also says that it should be noted that private demand experienced a rather encouraging summer period with a certain push visible in the Southern countries – notably in Italy – and even some hints of re-emergence in markets were individual buyers had remained largely muted so far, namely Germany and France.

Summing up, IHS said the European market saw no inflection or slowdown caused by the summer break and the outlook remains largely positive with no major obstacle in the short term. Although the macro economy is far from perfect, it is still so much better than in the recent past that it should definitively be counted as a positive factor. On the other hand, social tensions, enhanced by the current "migrant crisis", are certainly on the rise and may raise some concern. At the very least they illustrate how fragile and sensitive the European region can still be and, by consequence, its various markets, not least the automotive sector.