The market for new passenger cars in Europe rose in June (+2.4 %) or 1,461,859 units, boosted by carried by the impact of scrappage subsidy schemes in more than 10 EU Member States. It is the first market increase in 14 months, against the backdrop of a steep downward trend that commenced in May 2008. Irish sales fell 39%; Germany was at +40%; Spain and UK -16%.

ACEA, the European Automobile Manufacturers Association, said in June last year, the market was down 7.9% compared to 2007. June 2009, 2008 and 2007 all had a similar number of working days. Accumulative figures for the first half of 2009 show an 11% drop in European new car registrations compared to the same period in 2008, with a total of 7,425,762 new cars registered compared to 8,346,828 the year before.

New registrations in Western Europe rose by 4.6% in June, totaling 1,382,189 units. Countries with an incentive scheme mostly posted growth, with particularly strong demand in Germany (+40.5%), which is the largest market in Europe. Italy (+12.4%), France (+7.0%) and Austria (+4.0%) saw registrations increase as well, while the downturn in Spain (-15.9%) and the UK (-15.7%) was cushioned by more recently introduced support measures.

Irish sales were at (-38.8%) and in the year to June, (-62.3%).

In the first six months, only Germany (+26.1%) and France (+0.2%) performed better than in 2008. Overall, the West European market declined by 9.8%. Italy (-10.7%), the UK (-25.9%) and Spain (-38.3%) all recorded a double-digit decrease.

In the new EU Member States, new car registrations fell by 25.3% in June, with only the Czech Republic (+18.0%) and Slovakia (+57.4%) posting growth. The sharpest downturn was recorded by Latvia (-72.6%). In absolute figures, Poland remained the largest market despite a 2.5% decline. Six months into the year, Slovakia (+18.4%), the Czech Republic (+7.9%) and Poland (+0.2%) saw their markets expand while the overall market in the region decreased by -27.1%.

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