New data from the European Automobile Manufacturers Association (ACEA) shows that total figures for the month were 1,061,150 units.

Among the major markets, Italy and Spain recorded the strongest performances in January, up 17.4% and 12.1% respectively.  Also the French (+3.9%), German (+3.3%) and UK (+2.9%) passenger car markets grew during the opening month of 2016, although at more modest rates. 

In response, IHS Automotive said although the overall rate of growth is slightly weaker than at the close of 2015, there is little to suggest that the rate is easing at the moment. Carlos Da Silva, manager of IHS Automotive's European light-vehicle sales forecast, noted that one of the reasons for the slower growth is the negative calendar effect in many markets where one fewer day was recorded compared to January 2015. In addition, the fourth quarter of 2015 was particularly strong, which may have distorted comparisons. Indeed, it should be noted that, for many countries, January 2015's results were simply among the best for the month of January since 2008.

IHS added that the increase in Spain came from company car and rental demand for the forthcoming holiday season, and a large part of the improvement in Italy stemmed from private consumers returning to the market, attracted by dealers' incentives.

From an OEM perspective, the Volkswagen Group saw a relatively marginal improvement in the EU with an increase of 0.8% y/y, although it remained easily the largest automaker at 256,989 units. Its performance was dragged down by the VW brand, which slid by 3.8% y/y to 124,149 units. Although the negative press related to the diesel emissions of its vehicles could well be a factor in this, it is unlikely to be helped by the age of some of its key models such as the Polo, Golf, and the soon-to-be-replaced Tiguan. However, the group was also hampered by a slowdown in registrations for the SEAT and Porsche brands. Nevertheless, a 13.7% y/y surge recorded by Audi has helped matters, alongside smaller gains seen by Skoda.

Elsewhere, PSA Peugeot-Citroën and Renault Group also made gains behind that of the market as a whole, although more significant increases were seen elsewhere. This included Ford (+11.4% y/y), Fiat Chrysler Automobiles (+14.4% y/y), and Opel (+12.2% y/y), helping all three to make gains in market share.

Premium automakers also had a decent month, with BMW Group seeing an increase of 4.0% y/y, Daimler 8.5% y/y, and Jaguar Land Rover (JLR) 53.8% y/y, thanks to the Land Rover Discovery Sport and Jaguar XE sales now in full swing.

For the year as a whole, IHS Automotive currently anticipates EU sales to reach almost 14 million units during 2016, a gain of around 2% y/y. Although, in the coming months depending on the multitude of factors that could have an influence on its performance, the upgrade may be considered.