Spanish car market
While Spain managed to record its 20th consecutive monthly increase in April the market was far more sluggish than the double digit percentage improvements seen as recently as a month ago. The main reason for this has been the exhaustion of the seventh round of the Programa de Incentivos al Vehículo Eficiente (PIVE) scrapping incentive.
Nevertheless, registrations to private customers – the focal point of this initiative – has still grown by 18.8% y/y to 43,486 units, although a lower rate than in the previous quarter.
Company car registrations have also made a strong 34.9% y/y improvement in April, although registrations to rental car dropped 38.5% y/y to 16,347 units.
Italian car market
For Italy, this is the latest in a string of double-digit percentage gains since the beginning of 2015. In earlier months though, the rental market has taken some of the leadership but there is some indication that private demand is also coming back as well.
Indeed, orders this month have reached 158,000, up 31% y/y, and more than the 20% y/y increase recorded in the first quarter of the year. This could be underpinned by the slow improvements in the economy and a general need to replace existing vehicles.
However, trade associations in the country have also called on the government to implement similar incentives similar to those which have been so successful in Spain.
UK car market
This is now the 38th month in succession that passenger car registrations have grown in the UK as it continues its record-breaking run.
The latest improvement follows on from the gains in what is typically one of the two peak selling months of the year and in which over 490,000 units were sold, around 20% of the yearly total. The continued gains come as a result of a range of factors that have helped lift the market in recent months.
The Western European passenger car market again recorded a strong result in April as Southern Europe and Germany and the UK continued to fuel growth
Despite an appreciable slowdown in GDP during the first quarter of the year, consumer confidence remains buoyant with the highest levels since 2002 having been recorded in April. Supportive of this has been OEMs and dealers which have been involved in significant deal-making in recent times through leasing offers and other incentives which are maintaining momentum of the market.
As a result of higher increases in the first quarter of the year than initially anticipated, IHS Automotive is now anticipating registrations of 2.56 million units by the end of 2015, a gain of over 3% y/y. We are also looking at an around 3.0% y/y fall the following year back to 2.47 million units and further decline beyond that as it settles at a lower level. In the overall region we are foreseeing a slower growth rate we have seen so far this year. As a result IHS forecasts an uplift of 4% to 12.6 million units.
