New car registrations increased 10.3% in May to 1.35m vehicles, according to preliminary data released by the German automotive industry association, the VDA, reported by Reuters.


The VDA noted in a statement that some of the growth can be attributed to the fact that there were two more working days in some countries in May this year, compared to a year earlier. Also, Italy recorded a big rise in registrations in May, up nearly 50%, but this is because transport strikes delayed new car deliveries in May 2005.


Taking the first five months of the year together, European car registrations were up 2.6% to 6.52m vehicles, according to the VDA.


Registrations in France fell in May, by just over 3%, which the VDA attributed to the fact that in France there was one fewer working day in May this year, compared to a year earlier. The association also said that demand for domestic brands was weak and that this had an impact on overall sales volumes.


While registrations in Germany were up 8.7% in May, in Spain car sales were virtually flat, recording a gain of just 0.6%.

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The European automotive industry association, Acea, is due to report final May figures on Thursday.