So says LMC Automotive, which adds that the 2014 result still leaves the market 2.7 million units below the 2007 result, highlighting the scale of the contraction in new car sales in the region since the start of the financial crisis.

All Big Five markets in the region improved on their 2013 totals (though, in the case of France, it was a close call); however, the evolution of some market selling rates in recent months has disappointed, according to the firm.

In Germany, December sales were up by 6.7% — the full‐year market was up by 2.9%. Registrations finished the year at 3.04 mn units, though the selling rate deteriorated a little in recent months, highlighting that challenging conditions remain, even for the largest market in the region. 

There was a rather lacklustre finish to the year in France – with registrations falling in the final month) and Italy (its selling rate slipping back last month) — both markets were up for 2014, though only by a fraction in France. LMCA added that with a lack of economic growth, the Italian market remains at very low levels by historical standards — little improvement is expected this year as the economy continues to stall.

Spain continued to pick up well through last year, and selling rates above 900,000 units/year in recent months bode well for the start of 2015. The ongoing use of the PIVE scheme will be key to supporting market volumes.

UK registrations grew by an impressive 9.3% in 2014 to 2.48 million units, the market's best annual result since 2004 — the UK market was comfortably the largest contributor to the region's overall volume improvement in 2014.

West European registrations in the region grew 3.6% in December, though many markets had the added benefit of an additional selling day versus December 2013. With the economic and political picture looking far from rosy, LMCA forecasts somewhat slower growth for the region for 2015.

LMCA added that the last few months have seen the selling rate continue to climb, indicating a strong start to 2015 too and while the firm does not forecast growth to continue at the same pace this year, it added that OEMs could well continue to look to the UK as a source of relief from tougher market conditions elsewhere in Europe.