European sales continue to grow with a near 10% increase, and the best Jan in a Decade.

• European car registrations totalled 1.2 million units in January, which is an increase of 9.4% and constitutes the second highest January result in a decade
• 24 out of 29 European markets posted an increase in registrations in January
• SUV launches continued to drive growth – with 38,000 of the units registered last month being new models

The European car industry has continued to grow in January 2017 – with new car registrations for the month totalling 1.2 million units, a 9.4% increase when compared to January 2016. 

This is the second highest result for January in a decade, with the automotive market benefitting from an increased number of promotions and incentives across the 29 markets analysed.

All of Europe’s largest five markets posted an increase in registrations, with Germany experiencing the highest increase of 10.5%. This can be attributed to improved economic conditions and consumer sentiment, combined with lowered interest rates. 

France came in second, posting a healthy increase of 10.4%. This is due to there being two more working days in the month, increased sales to rental companies, and brands registering stock vehicles in January, in order to sell them later in the year – a common practice used to achieve objectives and take advantage of bonus season. Meanwhile, Spain, Italy and the UK all posted increases of 8.4%, 10.1% and 2.9% respectively. 

The strong performance in the UK may be due to consumers rushing to make purchases before the Brexit process gets underway, amidst claims that prices will rise due to the sinking pound. 

The UK’s performance is particularly notable ahead of the introduction of the new VED (Vehicle Exise Duty) car tax rules which are likely to influence the decision-making process of consumers from April onwards.

Among the 29 markets analysed, the Netherlands experienced a significant 26.6% increase in registrations. 

This was partially due to a shift in tax policy, with many dealers registering cars last month, to benefit from the new lower tax rate of 22% which came into effect in January 2017 (compared to the previous tax band of 25%).

“The positive results in January show that the boom of 2016 has continued into 2017. Increased incentives and stronger promotions are pushing consumers to purchase now. 

In the UK, anticipation of increased prices post-Brexit and the impending VED tax changes are driving growth, whilst in Germany lower interest rates are beginning to take effect. 

A range of economic and socio-political factors are benefiting the automotive industry and it will be interesting to see if the sector can improve upon the strong results of 2016,” commented Felipe Munoz, Global Automotive Analyst at JATO Dynamics.

Volkswagen led the brand ranking, although it is growing at a slower rate than the market average as the brand’s traditional models, such as the Golf and Polo, were overtaken by newer rivals. The Tiguan, Europe’s best-selling SUV, helped boost the brand’s performance.

The Volkswagen Golf maintained its lead, and sales remained stable, but the model is losing ground to its rival - the Astra. However, Volkswagen's recently updated Golf is expected to revitalise its sales over the upcoming months.

Vauxhall-Opel opens a €210 Million 7-floor testing and development building for propulsion systems of the future.

• Seven-floor testing and development building for propulsion systems of the future
• €210 million investment at Rüsselsheim, Germany headquarters

Only two years after the ground breaking ceremony the new, ultra-modern Global Propulsion Systems Center at Opel headquarters in Rüsselsheim, Germany is ready to go into service. The Opel Group includes the Vauxhall brand representing its largest market.

More than 800 engineers and technicians will develop the propulsion systems of the future in the complex with a surface area of around 36,000 square metres. 

The complex not only has a technology centre and office space but also 45 latest generation test dynamometers.

The €210 million invested in the new Global Propulsion Systems Center is the biggest single investment in buildings in Rüsselsheim since the inauguration of the new production plant in 2002.

“The new development centre will make our work even faster and even more efficient. It not only strengthens Opel but also Rüsselsheim and the entire GM development network,” said Dr. Karl-Thomas Neumann, Opel CEO.

“This new centre is a very important strategic investment. We will develop the propulsion systems of the future here by using ultra-modern tools and a total of 45 new dynamometers. GM decided to build this centre in Rüsselsheim for good reason. It is a sign of appreciation for the performance and the know-how of our highly-qualified Opel engineers. The global network makes GM and Opel especially strong”, said Dan Nicholson, Vice President GM Global Propulsion Systems.

This new construction is part of the €230 million investment in new testing and development facilities at the International Technical Development Centre (ITDC) and at the Development Centre in Rodgau-Dudenhofen announced two years ago, with most of the total amount being invested in Rüsselsheim.

The facility is integrated in the global development system of GM Global Propulsion Systems. The output can be optimally evaluated and implemented thanks to the internationally standardised testing procedures and software.

JATO Dynamics releases Europe's best brands and models for the month of July, Still, no surprise here.

• European new-car sales grew by 9.1% in July, 8.6% year-to-date
• Volkswagen continues to lead the market, as the Passat joins the Golf and Polo in the top five
• Ireland, Spain and Czech Republic post strongest growth in July

JATO Dynamics, the world’s leading provider of automotive intelligence, reports that the European new-car market grew by 9.1% in July compared to a year earlier, just above the 8.6% growth so far in 2015.

JATO’s headline market analysis:

• The total new-car market in Europe has now recorded 23 consecutive months of growth
• Ireland car registrations were up by 47.6% compared to July 2014, while growth in Spain and Czech Republic exceeded 20%
• All of the top ten models and top ten brands recorded higher year-to-date sales than the year before

The European new-car market entered the second half of 2015 in good health, with total volume across the continent 9.1% higher in July than a year ago, marking 23 consecutive months of growth. Year-to-date, the market has grown by 8.6% compared to the same period a year earlier.

Ireland, Spain and the Czech Republic performed well in July, with Ireland recording a 47.6% increase in July registrations due to a strong economic recovery (registrations are up by 30.3% year-to-date) and the mid-year registration-plate change introduced in 2013 becoming more established, rivalling the longer-running January spike in purchases. 

Most European markets are performing well, with 25 of the 29 included in JATO’s registration data reporting sales growth compared to 2014. Of the remaining four markets, Luxembourg is the only country to see sales fall by more than 2%.

Brian Walters, Vice President of Data at JATO Dynamics, commented “The markets that suffered most at the height of the economic downturn a few years ago, such as Ireland, Spain and Portugal, are now among the fastest growing markets in Europe as consumer confidence has returned.”

European Monthly Sales Volumes Year-on-Year Comparison

  

The Volkswagen brand maintained its lead of the European car market, with a 7.7% increase in volume, during July, almost matching the overall market growth, and its 8.9% year-to-date growth beating the market average. 

Ford took second position in overall sales, ahead of Opel/Vauxhall, Renault and Peugeot. All of the top ten brands have increased sales year-to-date.

Top Ten Brands

Make	Jul_15	Jul_14	% change Jul	Jul YtD_15	Jul YtD_14	% change YtD
VOLKSWAGEN	152,160	141,297	+7.7%	1,052,218	965,865	+8.9%
FORD	84,450	78,919	+7.0%	633,845	594,148	+6.7%
OPEL/VAUXHALL	74,736	72,320	+3.3%	573,558	545,542	+5.1%
RENAULT	70,831	67,525	+4.9%	586,859	535,532	+9.6%
PEUGEOT	70,223	63,498	+10.6%	519,931	484,084	+7.4%
AUDI	69,567	63,976	+8.7%	469,595	447,457	+4.9%
MERCEDES	62,920	56,171	+12.0%	433,799	389,760	+11.3%
BMW	57,539	53,680	+7.2%	429,442	399,007	+7.6%
FIAT	56,535	50,508	+11.9%	410,433	374,775	+9.5%
SKODA	54,799	52,045	+5.3%	374,498	351,346	+6.6%

Outside the top ten, Toyota and Nissan saw their July sales increase by over 5,000 units. Toyota’s new-look Yaris, latest Aygo and RAV4 models each recorded strong sales, while Nissan’s new Pulsar continued to increase sales in the mainstream C-segment. 

Tesla’s July sales were more than triple compared to those registered a year ago, led by sales of its all-electric Model S in Scandinavian markets, Germany and the Netherlands.

Volkswagen continued its dominance within the top ten models, with the best-selling Volkswagen Golf being joined by the brand’s recently revised Polo in second place and new Passat in fifth. 

The Passat recorded sales 49.9% higher than in July 2014 to move from tenth place to fifth in one month. The Ford Fiesta and Renault Clio took third and fourth places respectively.

Top Ten Models

Make & Model	Jul_15	Jul_14	% change Jul	Jul YtD_15	Jul YtD_14	% change YtD
VOLKSWAGEN GOLF	46,567	41,623	+11.9%	322,517	311,682	+3.5%
VOLKSWAGEN POLO	25,960	22,650	+14.6%	184,963	163,171	+13.4%
FORD FIESTA	22,855	23,802	-4.0%	197,344	191,692	+2.9%
RENAULT CLIO	22,851	23,593	-3.1%	188,945	186,221	+1.5%
VOLKSWAGEN PASSAT	21,972	14,653	+49.9%	133,208	94,542	+40.9%
SKODA OCTAVIA	19,928	18,136	+9.9%	131,632	124,207	+6.0%
FORD FOCUS	19,902	17,731	+12.2%	148,111	139,223	+6.4%
NISSAN QASHQAI	19,797	18,505	+7.0%	144,898	128,880	+12.4%
OPEL/VAUXHALL CORSA	17,769	19,932	-10.9%	169,004	153,685	+10.0%
PEUGEOT 208	17,644	16,676	+5.8%	138,877	135,874	+2.2%

Beyond the top ten, new and updated models such as the Skoda Fabia and Mercedes-Benz C-Class recorded significantly increased sales in July, along with more established models such as the Opel/Vauxhall Mokka (up 44.5%), Hyundai i10 (up 16.0%) and Volvo XC60 (up 34.9%).

Brian Walters concluded “Aided by high consumer confidence across much of the continent, the European new-car market continues to grow at a healthy pace, with both new and well established models performing well.”