New models and buyer incentives helped car sales in Europe accelerate by 4.5% last month, ending the first half with a record June after a weak start to 2005, industry data showed on Wednesday, according to Reuters.

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The report said car registrations in 23 European Union countries plus Norway, Switzerland and Iceland advanced to 1.55 million units, buoyed by another strong month in Germany – the continent’s biggest market by far – plus solid numbers in France and Spain.


Sales of new cars in Italy reportedly leaped 18% as the market snapped back from a transport strike that disrupted May sales in Europe’s third-biggest car market.


Reuters noted that BMW and Kia Motors strongly outpaced the market again, while Volkswagen, Europe’s biggest automaker, stormed back with brisk sales that lifted its market share to 19%.


Struggling Fiat, which had been hit especially hard by the strike of car transport truckers, saw registrations fall 4% despite the surging Italian market.

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Figures compiled by Brussels-based car industry group ACEA showed that registrations in the 15 older European Union members plus Norway, Switzerland and Iceland rose 4.5% in June but dipped 0.3% in the first half to 7.81 million cars, Reuters said, adding that, including the new EU members except Malta and Cyprus, European registrations eased 1.1% in the first half.


Bank Sal Oppenheim analyst Michael Raab reportedly attributed the sales rise to new models, such as the Mercedes B-class compact sport wagon and BMW 3-series sedan, the strike impact from Italy and the attraction of buyer incentives that fuel sales but hurt margins.


“The pricing environment, in particular in the mass market, is going to stay highly competitive. Selling vehicles without significant incentives in that part of the market has got to be very difficult if not impossible,” he told Reuters.