New car sales drop 1.6 per cent in Europe in 2009

(BRUSSELS) - Cash-for-clunkers schemes succeeded only in limiting the drop in new car sales in Europe last year, with new registrations down 1.6 percent compared to 2008, the European carmakers body said on Friday.

Nevertheless, such incentives along with fleet renewal plans in a number of the biggest auto markets, meant the figures showed significant improvement over 2008, when new car sales plunged 7.8 percent, the worst drop since 1993.

In total, 14.48 million new cars were registered last year in the 28 nations covered by the data -- 25 European Union members, not counting Cyprus and Malta, plus free-trade partners Iceland, Norway and Switzerland.

The ACEA car-makers association noted that "European new car registrations picked up in the second half of last year, largely due to the impact of fleet renewal schemes in a number of major markets."

In December 2009, demand for new cars rose by 16 percent, or 1,074,438 units compared to the same month the previous year.

Over the 12 months, only Austria (up 8.8 percent), France (up 10.7 percent) and Germany (23.2 percent) posted growth in western Europe compared to 2008.

By comparison, Italy dropped 0.2 percent, Britain 6.4 percent and Spain 17.9 percent over the year.

Among car makers, Germany's Volkswagen -- with its VW, Audi, Seat and Skoda brands -- remained in pole position, with its share of the market rising to 21.1 percent from 20.7 percent in 2008.

It sold 3.06 million vehicles in 2009.

PSA Peugeot Citroen's sales remained stable at 1.34 million units.