France, Spain and Italy extend car sales recovery in June
- Created on 14-07-05
- Hits: 2564
French, Spanish and Italian car sales rose in June, industry data showed on Tuesday, helped by extra incentives and demand for new models as Europe's vehicle sector steadily recovers from a six-year slump.
French registrations grew 3.2 percent in the month, bringing first-half gains to 2.9 percent raising its full-year growth forecast to 2 percent from expectations for no change.
Europe is recovering from a downturn in which demand dropped to a two-decade low, leading to widespread losses for vehicle makers and job cuts as the industry struggled to cover the huge fixed costs of its manufacturing base in the region.
New car sales in Italy, Europe's fourth-largest car market, rose 3.8 percent from the year before.
Industry groups warned the Italian recovery in the first six months of this year was still fragile and mainly the result of higher demand from the rental sector, while vehicle sales to private customers dropped slightly in the January-June period.
In Spain, new car sales surged 24 percent for a tenth consecutive month of year-on-year gains, as the market rebounded from record lows with 18-percent first-half growth.
Registrations were boosted by the renewal of state-backed sales subsidies for buyers who trade in older vehicles.