For the first time in 18 months, Europe has seen rise in new car sales by 1.8 percent with increased registrations making up to 1.08 million in April 2013. The increase in demand can be attributed to strong demand in the United Kingdom and early Easter break.
However, without the demand in UK the sales volumes would have recorded another fall. The United Kingdom alone contributed up to 15% higher sales. Demand for the first four months of 2013 stayed down by 7%.
European nations had been marked by low demand in the past few years owing to severe economic conditions, in many of its member nations. Last year, demand for new motor cars touched 17-year low figure with weaker economic conditions resulting in rising unemployment figures.
Even low budget cars are facing tough times with decreasing affordability capacity in lower income groups. Peugeot Citroen recorded 7.5 % - 13% fall in sales. Fiat sales volume decreased by 4%. However, Volkswagen Seat recorded 35% increased demand. Interestingly, Spain reported 10.8% higher car sales despite staggering economic conditions.
Mike Baunton, SMMT Interim Chief Executive commented, "We are pleased to see a rise in European new car registrations in April after such a long period of depressed demand."