General
European car industry boosted by accelerating sales
Fri, 15 Jul 2005
Accelerating sales have provided a boost for the European car industry, according to new data.
Car industry group ACEA found that new car sales across the continent accelerated by 4.5 per cent during June, more than reversing the downturn witnessed in May.
Registrations of new cars in 23 European Union (EU) countries, plus Norway, Switzerland and Iceland, increased to 1.55 million units.
A strong month in Germany, Europe's biggest market, combined with positive increases in France and Spain to boost the overall outlook.
Analyst Michael Raab of Sal Oppenheim said that the acceleration in sales could still spell good news for buyers, as manufacturers and dealers are forced to compete in a buoyant marketplace.
"The pricing environment, in particular in the mass market, is going to stay highly competitive. Selling vehicles without significant incentives in that part of the market has got to be very difficult if not impossible," Mr Raab stated.
The increase in sales will also in turn lead to increased demand for cheap car insurance across Europe.
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