Although car sales in Western Europe slipped by 0.2% in May, the underlying gradual recovery to demand continues, according to the analysts at LMC Automotive.
Fewer selling days in May versus last year had a negative impact on the annual comparison, but a look at the broader three-month average SAAR implies a market rate of 12.9m units a year, LMC said. In selling rate terms, the market was a little weaker last month after a strong start to the year.
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LMC forecasts that the West European car market will reach 12.9m units in 2015, some 6.4% ahead of last year.
The German car market provided cause for concern with sales down by 6.7%; the year-to-date market was up by 3.6%. LMC noted that the German market continues to be driven by company car sales, as the private channel remains weak (2.5% decrease year-to-date). In addition, reportedly around one-third of new registrations in Germany are self-registrations, highlighting that market “demand remains less than buoyant” according to LMC.
The Italian car market continued its upward trajectory, with a 10.8% rise in sales in year-on-year terms, taking its selling rate to 1.63m units a year. LMC said Italy’s car market was boosted by pent-up demand from private customers replacing ageing vehicles. Additionally, the World Expo in Milan that began in May provided support as rental car agencies prepared for the busy period.
In Spain, as expected, the government has renewed its PIVE scrappage scheme; sales registered 14% growth in year-on-year terms.
In France, car registrations fell by 4% year-on-year in May, a result skewed by fewer selling days. Despite a weaker May result, the French market was up nearly 4% for the first five months of the year with selling rates averaging 1.9m units a year in recent months; this sets the market up for a solid full year result.
The UK market impressed once again in May, with year-to-date growth up 5.7% on last year as real wages continue to pick up.
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| Sales (units) | Selling rate (units/year) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| May | May | Percent | Year-to-date | Year-to-date | Percent | May | Year-to-date | Year | Percent | |
| 2015 | 2014 | change | 2015 | 2014 | change | 2015 | 2015 | 2014 | change | |
| WESTERN EUROPE | 1,061,513 | 1,058,939 | 0.20% | 5,583,028 | 5,238,630 | 6.60% | 12,505,167 | 12,778,475 | 12,102,120 | 5.60% |
| AUSTRIA | 26,032 | 26,986 | -3.50% | 130,686 | 137,507 | -5.00% | 288,299 | 299,275 | 303,318 | -1.30% |
| BELGIUM | 40,502 | 42,955 | -5.70% | 238,998 | 244,806 | -2.40% | 484,012 | 483,878 | 482,410 | 0.30% |
| DENMARK | 16,102 | 16,871 | -4.60% | 82,346 | 81,231 | 1.40% | 186,213 | 202,322 | 189,051 | 7.00% |
| FINLAND | 9,114 | 10,114 | -9.90% | 48,100 | 49,933 | -3.70% | 99,253 | 99,115 | 106,224 | -6.70% |
| FRANCE | 143,059 | 148,951 | -4.00% | 790,353 | 762,519 | 3.70% | 1,807,697 | 1,875,552 | 1,795,847 | 4.40% |
| GERMANY | 256,385 | 274,804 | -6.70% | 1,305,410 | 1,260,654 | 3.60% | 2,920,394 | 3,177,602 | 3,036,791 | 4.60% |
| GREECE | 7,348 | 7,459 | -1.50% | 32,420 | 29,505 | 9.90% | 76,492 | 72,265 | 71,217 | 1.50% |
| IRELAND | 6,940 | 6,272 | 10.70% | 81,259 | 63,947 | 27.10% | 104,288 | 114,768 | 96,283 | 19.20% |
| ITALY | 146,582 | 132,313 | 10.80% | 723,247 | 629,762 | 14.80% | 1,625,551 | 1,566,925 | 1,358,016 | 15.40% |
| LUXEMBOURG | 4,345 | 5,198 | -16.40% | 21,247 | 22,729 | -6.50% | 51,789 | 43,263 | 49,793 | -13.10% |
| NETHERLANDS | 28,049 | 30,943 | -9.40% | 164,802 | 166,254 | -0.90% | 340,672 | 364,033 | 388,630 | -6.30% |
| NORWAY | 12,036 | 12,337 | -2.40% | 60,185 | 60,944 | -1.20% | 139,593 | 146,030 | 144,202 | 1.30% |
| PORTUGAL | 18,343 | 13,782 | 33.10% | 79,558 | 60,056 | 32.50% | 201,491 | 187,018 | 142,812 | 31.00% |
| SPAIN | 94,030 | 82,483 | 14.00% | 443,879 | 364,825 | 21.70% | 969,828 | 987,294 | 855,283 | 15.40% |
| SWEDEN | 29,458 | 27,652 | 6.50% | 135,727 | 122,998 | 10.30% | 316,431 | 331,450 | 303,866 | 9.10% |
| SWITZERLAND | 24,482 | 25,787 | -5.10% | 125,739 | 121,986 | 3.10% | 287,322 | 302,101 | 301,942 | 0.10% |
| UK | 198,706 | 194,032 | 2.40% | 1,119,072 | 1,058,974 | 5.70% | 2,605,840 | 2,525,583 | 2,476,435 | 2.00% |
Austria, Denmark, Greece, Luxembourg and Switzerland: estimates for latest month
The percent change in the final column compares the average selling rate in the year-to-date with the last full year.
