April Vehicle Sales Hint at European Market Recovery

PARIS – A 1.7% increase in April sales may be another sign that Western Europe’s automotive market is approaching its trough, although the market remains down 7.1% for the year.

April 2013 had two more selling days than like-2012, because Easter came early, so on a daily sales basis, the month still was negative by more than 8%. But the 1,038,343 deliveries were 16,985 units more than prior-year, for the first month-on-month improvement since September 2011.

Three of Europe’s large markets – Germany, Spain and the U.K. – had positive results in April, while France was down 5.3% and Italy was off 10.8%. For the first four months, only the U.K. was ahead of 2012.

The recovery in markets such as Greece (up 20.9% in April) and Spain (up 10.8%), which have been badly damaged by the euro crisis, are particularly positive indications that Europe may hit bottom soon. Sales must start increasing if the European auto makers’ forecast of a 5% decline this year is to be reached.

“April’s performance should be taken cautiously,” says Carlos Da Silva, manager-European light-vehicle sales forecasts for IHS Automotive. “The West European market remains at one of its lowest trend levels for a long time.

“(Through April), only one car group has been able to sell more passenger cars than last year at the same period: Daimler – by less than 7,000 units. That’s a bit short for flat-out optimism.”

Hyundai-Kia also was ahead through the first four months by 252 units, but ACEA, the European auto makers’ association does not consider the two brands to be a group. By brand, Jaguar, Dacia, Honda, Land Rover, SEAT, Kia and Mercedes have sold more cars year-to-date than in like-2012.

Among the volume auto makers, Volkswagen and Renault showed April gains of 9.9% and 5.1%, respectively. PSA Peugeot Citroen was down 10.1% and Fiat was down 10.0%. General Motors group slid 4.5%, although Opel/Vauxhall gained 1.8%. Ford was off 0.6% for its best showing of the year.

Toyota, Nissan, Honda and Hyundai-Kia all had plus months, as did premium makers Daimler and Jaguar Land Rover. BMW and Volvo were down 3.7% and 5.6%, respectively.