In its latest report, LMCA says that car sales in Western Europe grew by 5.1% in January while the Seasonally Adjusted Annualised Rate of sales stood at 11.7 million units/year – a little weaker than December 2013, though a number of factors, such as tax changes and year‐end pushes, helped the December result.

The German market started this year somewhat stronger than it did in 2013. Last year's result was disappointing for the largest market in the region, with it falling below 3.0 million units. The January result, along with a solid pick-up in the economy and consumer confidence, should see this market climb back above 3.0 million units for 2014, according to the firm.

Elsewhere, the UK market has continued to make solid progress, having been the star performer in the region last year. Many of the factors that helped market growth recently remain in place – including low interest rates, improved consumer confidence, and growing economic activity – which bodes well for car sales as the year progresses.

The other major car markets in Western Europe also started 2014 on a positive note. The Spanish market remains at levels of less than half of those seen pre‐financial crisis, though it is moving slowly in the right direction thanks to ongoing government support in the form of the PIVE scheme. Until unemployment rates begin to fall from the lofty levels currently seen in Spain, any serious improvement in the car market will likely be postponed, though there is the potential for rapid market improvement once economic conditions allow, says LMCA.

The French car market improved last month, though the weak economic backdrop remains a concern and the selling rate suggests tough months ahead. Italy also saw an improvement in year‐on‐year terms, but a selling rate that reflected the difficult economic conditions that continue to be endured.