In the seventh consecutive monthly gain for European car registration figures, sales climbed by 10 per cent in March, compared to the same month last year.
Renault, Peugeot, Citroen and Volkswagen were the main beneficiaries. Registrations climbed to 1.49 million cars compared to 1.35 million a year ago, a move that is being put down to both pent-up demand and an influx of new models enticing customers back across showroom thresholds.
With consumer confidence rising and the European Commission predicting a 1.2 per cent growth in the euro zone economy, car makers will be keeping every finger and toe crossed that the upward trend continues.
The biggest gain was made by Renault, which saw its overall sales climb by 29 per cent (thanks to a 51 per cent jump in Dacia sales and a 23 per cent rise for Renault itself), while French rival PSA Peugeot Citroen saw its sales climb by 11 per cent. Ford saw its sales in Europe rise by 14 per cent while General Motors, in spite of a 52 per cent decline in Chevrolet sales (hardly surprising as the brand is shortly to abandon Europe altogether) still managed to improve by seven per cent, thanks to strong performances by Opel.
Even Fiat, much battered by recent economic winds, managed to grow its sales by 4.2 per cent including a surprise rise of two per cent for Lancia sales – surprising given that Lancia is soon to be reduced to a single model, the Ypsilon city car. Hyundai gained 5 per cent, Kia 10 per cent, Toyota 5 per cent and Nissan 15 per cent. Of the luxury brands, BMW was up by 6 per cent, with Mercedes gaining 7 per cent. Jaguar Land Rover's sales actually fell by 2 per cent overall.
However, analysts are warning that much of the current success is built upon a house of cards of discounts and incentives. According to Reuters, even Volkswagen is discounting its models at up to €2,400 per car, while others, such as Peugeot, are giving away as much as €3,000 to draw customers in. Hyundai’s European boss Alan Rushforth said that “there are some positive signs of underlying, organic industry growth in the first quarter. But the hangover from economic risks and car makers’ tactical actions means it’s still too early to start celebrating a full market recovery”.
