EU passenger car registrations up 8.2% in last four months, reports ACEA

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Data from the European Automobile Manufacturers Association (ACEA) shows that demand last month rose 6.9%, totalling 1,166,482 units and recording the best result in terms of volume for the month of April since 2009.

All major markets contributed positively to the overall expansion, especially Italy (+24.2%), which posted double-digit growth, followed by Germany (+6.3%), the UK (+5.1%), Spain (+3.2%) and France (+2.3%) that also performed better than in April 2014.

Four months into the year, new passenger car registrations increased by 8.2%, totalling 4,695,058 units. All major markets posted growth, contributing to the overall upturn of the EU market. Registrations in Spain (+23.9%), Italy (+16.2%), the UK (+6.4%), Germany (+6.4%) and France (+5.6%) increased over this period.

Carlos Da Silva, manager for IHS Automotive's European light-vehicle sales forecast, commented on the figures, saying that although "growth is definitely on the agenda in Europe, it relies on some favourable but temporary elements. Most of the current dynamism is essentially due to a catch-up phenomenon: customers – private or companies – that need to renew their car, not necessarily customers that really want to do so. Taking into account that this momentum is amplified by the aforementioned tactical push, it seems reasonable to retain a more cautious outlook. Until private buyers really come back into the market and businesses pass the point where they are merely renewing past car contracts and leases, it is hard to consider Europe as a sustainable place for both long term volumes and long term profitability."

IHS Automotive said it now expects passenger car registrations in the EU to grow by over 4.0% y/y to almost 13.1 million units this year, almost returning the region to 2011's figure. However, it added that the market remains well behind the pre-crisis average and is not expected to return to it.

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.

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