January Registrations Up Across Europe

PARIS – European car registrations increased 5.5% across the board in January, with all five major markets showing growth.

The region’s five biggest markets were up 5.3%, according to figures from the ACEA, the European automakers’ association.

Germany, the U.K. and Spain all saw sales grow by more than 7%, with Italy (+3.2%) and France (+0.5%) positive as well. Registration in the 22 smaller European countries, which comprise 30% of the market, rose 5.9%.

The substantial increase in Germany and the continued turnaround in France, Spain, Italy and Portugal (+31.8%) are considered good signs for the year. Southern Europe has suffered the most in the current economic climate, while Germany, the largest market, declined in 2013 as well.

“In absolute terms, we are still contemplating very low volumes,” says IHS analyst Carlos Da Silva. The total of 935,640 deliveries was the second-lowest for January since 2003 when ACEA began keeping records for the expanded European Union. “But still,” says Da Silva, “the trend initiated in 2013, and which saw car sales starting to bottom out, remains valid and is now pointing to future growth.”

In general, analysts in Europe expect the market to grow 2% to 3% this year. While the region’s economy appears to be expanding, unemployment remains high.

“Austerity measures are far from over and job markets remain tense in many countries,” says Da Silva. “This implies that a derailment is always a possibility.”

Sales in Europe fell for a fifth straight year in 2013, and the car parque is aging, so replacement demand is expected to buoy sales.

European automakers Renault, Ford, Volkswagen, PSA Peugeot Citroen all sold more than the market average in January, as did Japanese makers Mazda, Toyota, Mitsubishi and Suzuki. Fiat was down 2.1%.

January was a mild month for luxury brands, up just 3.4%. Audi was the volume leader with 52,691deliveries, up 9.5%, while Lexus posted the highest year-over-year growth rate, 25.7%. Mercedes and BMW reported small upticks, while Land Rover and Jaguar saw declines.