EU New Car Registrations Rise on Strong Demand from Periphery

By Friedrich Geiger

FRANKFURT--The number of new car registrations in the European Union rose in July due to strong demand in its peripheral countries, the latest sign that car sales in the region may be stabilizing.

Registrations rose 4.9% on the year to 981,300 cars, the first increase since April and the second monthly rise this year, according to the German Association of the Automotive Industry, or VDA.

In the January-to-July period, registrations have fallen 5.2% on year, however. The data don't include EU member Malta.

VDA President Matthias Wissmann hailed the increase, saying that the positive result in the western European car market "is a good start to the stabilization of the automotive business, which we expect to continue in the second half of the year in this important market."

Rising car sales also add to hopes that the economy of the euro zone is recovering. Gross domestic product of the 17 countries using the common currency grew 0.3% last quarter after having contracted for six consecutive quarters, while new car registrations have been declining for years as recession-hit consumers cut back on purchases.

"The economic recovery taking shape in western Europe obviously reflects growing demand for passenger cars," said Mr. Wissmann.

"It is encouraging that Spain, Portugal and Greece in particular saw double-digit growth in new car registrations in July," he said.

Registrations rose 15% in Spain, 17% in Portugal and 12% in Greece. In Ireland, registrations more than doubled. France recorded a 1% increase, the first growth since October 2011.

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