Car Sales up 15% in Western Europe

January car sales in western Europe grew 15% over a weak year-ago period to 1 million units, as strong sales in France, Italy and the U.K. compensated for a downturn in Germany, says J.D. Power and Associates.

January registrations in France and Italy grew by nearly 15% to 171,000 and 30% to 206,000 units, respectively, compared to January 2009. Registrations in both countries benefited from a spurt of transactions in late December, as customers rushed to take advantage of scrappage incentives. Similar programs boosted year-over-year sales 18% to 70,000 units in Spain and nearly 30% to 145,000 units in the U.K.

Car sales in Germany fell 4% to 181,000 units, but deep discounts by automakers prevented a sales collapse. Germany’s Association of International Motor Vehicle Manufacturers (VDIK) projects 2010 sales of 2.8 million units, down from 3.8 million units in 2009.

As scrappage incentives in western Europe’s markets wane or end this year, J.D. Power forecasts 2010 sales in the region will decline 9% to 12.4 million units.

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