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Western Europe's Sales Up 15 Percent in January

The number of vehicles sold in January 2010 in Western Europe are 14.9 percent higher than the same month of last year, according to a report by JD Power Automotive Forecasting cited by just-auto.com. The growth, however, is not that relevant, JD Power say, given the fact that January 2009 was a very weak month.

This is because back then the crisis was at its peak and government incentives and scrappage schemes were not yet in place. The growth registered this month comes from Germany, France and Italy. In Germany, for instance, the growth was better than expected.

“There is still some backlog of sales coming through from the scrappage scheme,” Pete Kelly, JD Power analyst told the source. “And demand in Germany has also been helped by some very heavy discounting by manufacturers, something that we expect to continue.”

In both France and Italy, the speed gained in the last months of 2009 was maintained, but the forecaster estimates the sales rhythm will slow down in the months to come.

In Spain and the UK, the scrappage schemes still in place keep helping dealers diminish their inventories. Both schemes will run well into 2010, until March in the UK and well into July in Spain.

For the entire 2010, JD Power estimates the rate of sale will drop by 9.1 percent, reaching 12.4 million units. The effect will likely be felt in the second half of the year, when most European incentive schemes are scheduled to end.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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