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Car offtake`s up in Europe, Renault, BMW set the pace
London, July 13: Consumers in western Europe started buying cars again last month, raising hopes of a moderate recovery for the sector in the second half of the year, with France`s Renault, one of June`s biggest gainers.
London, July 13: Consumers in western Europe started buying cars again last month, raising hopes of a moderate recovery for the sector in the second half of the year, with France’s Renault, one of June’s biggest gainers.
Brussels-based automakers association ACEA said on Friday car registrations in the region climbed 2.9% in June from a year ago, the strongest rise so far this year. That brought registrations for the first six months of the year to about 7.56m vehicles, down 2.6%.
Sales of Renault cars, which jumped almost 13% in June, were helped by strong demand for its new Megane mid-sized car, said analysts, who also noted that the French company’s new Scenic minivan will boost sales later in the year. German luxury automaker BMW was another winner, while Japanese and Korean carmakers continued to strengthen their position in Europe. Their growing market share is threatening rivals, including Italy’s Fiat and US companies, analysts say. DaimlerChrysler, Ford and Fiat were among the weaker players last month.
The bank said a second-half recovery had been largely priced in and it did not expect good news in the second-quarter earnings season to encourage investors to continue buying into the European sector, which has gained about 20% since the start of June. A reluctance by consumers, shaken by weak economic conditions and worries about the Iraq war, to splash out on new cars has dented sales in recent months, but most experts predict an improvement in the second half as uncertainty recedes and a sustained stronger euro boosts purchasing power.
“This positive (June) result seems to indicate that the market is starting to recover after a first half of the year marked by economic and political uncertainties,” said ACEA in a statement. Bureau Report
Sales of Renault cars, which jumped almost 13% in June, were helped by strong demand for its new Megane mid-sized car, said analysts, who also noted that the French company’s new Scenic minivan will boost sales later in the year. German luxury automaker BMW was another winner, while Japanese and Korean carmakers continued to strengthen their position in Europe. Their growing market share is threatening rivals, including Italy’s Fiat and US companies, analysts say. DaimlerChrysler, Ford and Fiat were among the weaker players last month.
The bank said a second-half recovery had been largely priced in and it did not expect good news in the second-quarter earnings season to encourage investors to continue buying into the European sector, which has gained about 20% since the start of June. A reluctance by consumers, shaken by weak economic conditions and worries about the Iraq war, to splash out on new cars has dented sales in recent months, but most experts predict an improvement in the second half as uncertainty recedes and a sustained stronger euro boosts purchasing power.
“This positive (June) result seems to indicate that the market is starting to recover after a first half of the year marked by economic and political uncertainties,” said ACEA in a statement. Bureau Report