New car registrations in the EU grew by 2.6% in July, with a strong performance in the B-SUV segment.

Volkswagen T-Roc

The figures from JATO Dynamics show new registrations for the month totalled 1.19 million units, the best July result since 2009, and the best result for the January – July period since 2008.

However, the firm’s analysts warned that growth is slowing. Uncertainty caused by Brexit for the UK market resulted in registrations for the country declining by 9.3% when compared to July 2016.

In contrast, France contributed greatly to the positive overall performance of Europe, registering a 10.8% increase on the same period last year as a result of higher private purchases and strong increases from the country’s local car manufacturers. Notably, Poland also recorded an outstanding result, registering a significant 17.8% increase in growth, meaning that the country is now one of Europe’s six largest car markets due to increased purchases by institutional customers.

SUVs continued to see strong take-up, with the B-SUV segment increasing its share of the market to over 10% and volume increased by 16%, showing the strength of the segment as Volkswagen launches the T-Roc.

Felipe Munoz, global automotive analyst at JATO Dynamics, said the VW’s debut comes as a shift is happening in the B-SUV market.

“As many of the current B-SUV vehicles available on the market age and are replaced, the segment’s traditional leaders such as the Peugeot 2008, Nissan Juke and Fiat 500X are posting lower increases or even declines. However, consumer demand still exists. This will have a positive impact on the newly launched Volkswagen T-Roc, which will hit the market just as many of its rivals such as the Nissan Juke and Dacia Duster are set to be replaced,” he commented.

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