According to the latest report from JATO Dynamics, new car registrations in the 29 European markets increased by 7.1% in September compared to the same month last year, with 1,495,815 units registered. This is the strongest September monthly sales result for ten years.

SUV registrations exceeded 400,000 units for the first time in the history of European car sales.

For the year to date, registrations were 11.6 million units, an increase of 7.7% when compared to 2015, the best result since 2008.

The strong result in September was driven by good performances in the majority of markets, but particularly Italy, Poland, Belgium, Austria and Spain which recorded increases of 17.4%, 19.8%, 13.7%, 14.9% and 13.4% respectively. There was double-digit growth in sixteen of the 29 markets analysed and negative change in only three – Ireland, the Netherlands and Greece which recorded decreases of 1.5%, 4.8% and 9.9% respectively.

In the segment ranking, JATO found that SUV registrations exceeded 400,000 units for the first time in the history of European car sales. As a result, the market share for the SUV segment jumped from 23.3% to 26.9%. The SUV segment’s growth in market share had a knock on effect on the Subcompact (B-Segment), City-car (A-Segment) and MPV segments which all showed negative market share growth.

The Renault-Nissan Alliance maintained its lead in the SUV segment with a significant 21.7% share and continued to perform well, with volume up by 14%. Jaguar Land Rover continued to grow by outselling the mainstream players like PSA, Ford, FCA and General Motors.

Following on from its market share loss in August, Volkswagen Group continued on a downward trajectory in September, but its losses have stabilised. It declined from 23.2% in September 2015 to 22.9% for the same month in 2016. Within the Volkswagen Group, the Volkswagen and SEAT brands posted moderate growth of 3.5% and 0.6% respectively, but this was enhanced by better results from Porsche, Audi and Skoda growing by 9.6%, 8.7% and 9.9% respectively.

The Renault-Nissan Alliance increased its market share, going from 12.4% in September 2015 to 12.9% for the same period this year whilst maintaining its second position in the ranking. Of the top ten manufacturers, it was the Renault-Nissan Alliance which was most heavily reliant on the SUV segment, with it accounting for 45.4% of the Group’s registrations.

BMW outsold Ford due to a 13% increase in overall volumes compared to the same period last year, and double digit growth from all of its brands. Daimler similarly posted dramatic growth with its registrations up by 17.8% and it registered the highest market share increase of all manufacturers, with an increase of 0.61 percentage points. The Mercedes brand recorded a 17.8% increase on the same period last year and registered 91,572 vehicles in September which made it the best-selling premium brand in Europe for the month.

At a model level, the Volkswagen Golf continued to lead the market, registering 46,392 units in September which was enough to make it the best-selling model in the month. However, this was a 15.2% decline on the same period last year which is the biggest market share drop of the 473 models analysed by JATO Dynamics.

The Ford Fiesta was just 11,000 units behind the Golf, registering 35,235 units, but this was a fall of 7.4% compared to the same period last year. In contrast, the Fiesta’s closest rival, the VW Polo posted a 10.8% increase and registered 31,753 units which meant that it outsold the Opel/Vauxhall Corsa. The Nissan Qashqai maintained its position as the best selling SUV, despite increased competition in the segment.

Felipe Munoz, global automotive analyst at JATO Dynamics, concluded: “With SUVs continuing to dominate the market, this is having an impact on the performance of all manufacturers. Competition in this segment is increasing further, with no sign of this changing in 2017 as further SUV launches are set to hit the market.”