European car sales accelerate 6.4% in September

(PARIS) - New car sales in Europe accelerated by 6.4 percent in September, the thirteenth month running of increases as a recovery in the market spreads across the continent, data released on Friday showed.

The European Automobile Manufacturers Association said "substantial growth prevailed in all major markets" in the EU in September, with nearly 1.24 million new cars sold.

Spain led the pack, with sales jumping by 26.2 percent against September 2013, thanks mainly to its "cash-for-clunkers" programme, although the country's economy is gradually recovering after six years of crisis.

For the January to September period, sales climbed 6.1 percent to 9.57 million vehicles.

Spain also led the recovery for the nine-month period among the big European economies with a 17.2 percent increase, followed by Britain where sales shot up by 9.1 percent.

Despite anaemic growth in their economies, car sales in Italy still rose by 3.6 percent, by 2.9 percent in Germany and 2.1 percent in France.

Vehicle sales are still far from pre-crisis levels, however, after suffering six years of declines and analysts warned stalling economic growth in Europe could still drag on the market.

Jean-Francois Belorgey, from EY, said there were "not many objective reasons (for the increase) except for the age of the fleet" because "the economic fundamentals have not suddenly improved in two months".

The 1.24 million vehicles sold in September 2014 is far off the 1.4 million sold in sold in September 2006.

Volkswagen is extending its lead in European sales, with a 7.9 increase over the nine months to 2.4 million vehicles, expanding its market share to 25.2 percent from 24.8 percent.

France's PSA Group, which manufactures Peugeot and Citroen vehicles, saw its sales rise 4.8 percent to 1.0 million vehicles, although its market share slipped to 10.9 percent from 11.0 percent.

"The (Peugeot) 308, which is the range level where it makes money, has found its niche," said Belorgey. The new model helped Peugeot to a 10.6 percent jump in September sales.

Renault was in third place, expanding its market share to 9.6 percent from 8.8 percent thanks to a 15.9 percent jump in sales to 921,038 vehicles. Sales of its low-cost Dacia lineup jumped by 29.2 percent.

Sales in the GM group were down by 3.3 percent, due to the US group deciding to phase out its Chevrolet brand in Europe. Its German unit Opel, beat the average with an 8.2 percent increase to 671,198 vehicles.

Shares in Volkswagen climbed 3.69 percent to 158.75 euros, compared to a 1.81 percent rise in the broader DAX index.

In Paris, shares in Peugeot jumped 6.58 to 9.23 euros, and Renault rose 4.33 percent to 54.65 euros, outpacing a gain in the broader market.

Meanwhile shares in Faurecia, a unit of PSA Group, rose 6.02 percent after the car parts maker said its third-quarter sales jumped 6.5 percent.