Car Sales Increase by 15% during June 1

EU car salesEuropean car sales growth has grown for the fastest pace in 5 and half years during the month of June, this is in no small part down to Citroen, Ford, Peugeot and Volkswagen all releasing new models which in turn has been attracting new customers across Europe.

ACEA Announcements

Registrations grew by 15 percent from 1.23 million a year earlier to 1.41 million this year; the Brussels based European Automobile Manufactures’ Association, or more commonly know a ACEA have said that this was the biggest jump in car sales since the 16 percent surge in December 2009. This surge was down to governments offering trade in of older cars to help the car industry recover from the global recession.

This growth in sales has been credited to the economies of the 19 countries using the euro because they are in their longest stretch of growth since the world wide credit crunch in 2008, while the unemployment level in the UK is at seven year low. Due to this the ACEA has more than doubled its 2015 regional car market expansion, which is a major contrast to China were car makers have announced slowing sales.

The ACEA who compile data from 28 of the 29 European Union nation plus Iceland, Norway and Switzerland, are now forecasting the car market will by 5 percent across Europe this, which they previously predicted would only grow by 2 percent.

Continuous Gains

Last month the 22nd in a row of consecutive gains, major gains in June were helped in part due to religious holidays across some European countries during May this year. While first half registrations rose by 8.2 percent to 7.41 million vehicles.

Europe’s largest car manufacturer Vauxhall, announced a 17 percent increase in sales last month, helped by the recent release of the VW Passat sedan. While Peugeot posted a 13 percent increase in sales, assisted by the popular 308 hatchback, as the Passat and the 308 are the two most recent winners of the European Car of the Year award.

Chinese Decline in Sales

In China, the world’s largest car market announced car sales fell in June for the first time in more than 2 years. Car manufactures such as Audi, BMW and Volkswagen have cut prices in China and adjusted sale targets due to the slowing economic growth across the region.

Car makers have widened discounting in June counter the fall in sales, with reductions averaging 12.5 percent off the sticker price compared to11.9 percent in May. General motors’ offered the largest cuts, amounting to 15.8 percent, while UK brand Vauxhall were second on the list with cut amounting to 9.6 percent.