European car market grows 5pc in July
Frankfurt, August 17, 2013
Europe's ailing car market grew in annual terms for only the second time this year in July, supporting hopes of a much-needed stabilisation in the second half of 2013.
Registrations of new cars in Europe rose 4.8 percent compared to the same month a year ago to 1.02 million vehicles, according to data published on Friday by the German auto industry association VDA.
"The positive July result ... is a good start for the stabilisation we expect in the second half," VDA President Matthias Wissmann said in a statement.
"The emerging economic recovery in western Europe appears to be reflected in the development of car demand," he continued, adding that double-digit gains in austerity-hit Spain, Portugal and Greece were cause for confidence.
An extra working day in Germany, the region's economic engine of growth, helped lift domestic sales slightly in July over the previous year's month, but Frankfurt-based market researcher Dataforce calculates that volumes there still shrank 2.3 percent when adjusted for this calendar effect.
Europe's car market is set to shrink for a fourth straight year, plumbing depths not seen in 20 years but second quarter results have suggested some mas-market producer are closer to breaking even in Europe than previously thought.
Registrations in the first seven months of the year fell 5.2 percent to 7.46 million vehicles, but demand is expected to cease dropping materially as sales rates have started to recover and year-on-year comparisons become easier given the second half of 2012 was weak.
A senior Ford executive told Reuters earlier this week that a manufacturers' price war would not let up until sales increase significantly. – Reuters
More INTERNATIONAL NEWS Stories
- Passports requiring probe were on Malaysia flight
- 40 killed in Yemen as Houthi fighters near capital
- Vietnam finds object in sea; search on
- $5bn poll spend to boost India economy
- Libya authorises use of force against Korean tanker
- Ukraine PM says he will go to US to discuss crisis
- Syrian journalist killed covering fighting
- Malaysian jet may have turned back before vanishing
- No sign of missing plane; Malaysia probes false passports
- Two Europeans not on board 'missing' Malaysian jet
- China draws red line on North Korea
- Saudi sentences three to death for 2003 bombing
- First bitcoin machine opens in UK
- US sanctions will boomerang, warns Russia
- China plans $50bn bank to fund projects
- Sony to sell Tokyo 'birthplace'
- Obama orders sanctions over Russian moves
- Crimea parliament votes to join Russia
- Arab League to be revamped
- 'Upskirting' is legal: Massachusetts court
- Singapore probes 'unnatural' death of bitcoin trader
- Onus on world powers for Syria war crimes: UN
- US, Russia set for talks on Ukraine crisis
- Brent oil drops below $109
- Services outshine manufacturing, pushing up jobs
- Bitcoin bank shut down after hacker attack
- India to kick off world's biggest poll on April 7
- China signals focus on reforms
- Hundreds ready for bitcoin exchange class action
- Space taxi, Jupiter mission in Obama budget