European car sales on the rise


Car sales in Europe rose by 16 per cent in December, an indication that the sector is making a gradual recovery after a challenging year.

A total of 14.5 million cars were sold across 28 European countries in 2009.
Registrations increased by 16.7 per cent in Italy; 25.1 per cent in Spain; 38.9 per cent in the UK; and 48.6 per cent in France.
Germany saw the biggest rise in total vehicle sales in 2009ÔÇöup more than 23 per cent compared with 2008. However, sales for December were lower than one year ago, following the end of the German car scrappage scheme in September.
Austria and France also posted strong overall growth compared with 2008.
In the new EU member states, sales in the Czech Republic were up 43.8 per cent, and in Slovenia, 12.4 per cent.
Both the Czech Republic and Slovakia recorded a significant increase in total sales for 2009.
However, as scrappage schemes across Europe draw to a close there are fears that sales could once again dip. It is thought that major brands such as Volkswagen, Renault and Fiat, who benefited the most from scrappage schemes, could also suffer the most when they end in 2010.
Renault, whose second largest shareholder is the French government, saw new registrations for its namesake brand rise by half in December, taking its full year sales volume to around 1.1 million vehicles.
Italian manufacturer Fiat saw sales volumes grow by 23 per cent, driven largely by a 17 per cent rise in its domestic market, as well as overall strong demand for small cars, such as the Punto and 500.
Nissan, which derives a large proportion of its sales from the UK, saw its European sales nearly double during December.
Tata's Jaguar Land Rover unit also saw overall European registrations rise by over 50 per cent, boosted by a recovery in the UK market.
However, Mercedes-Benz and BMW posted sluggish growth, with Audi reporting a 14 per cent decline in vehicle sales.
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