Sales of new cars in Europe fell again in November, it has been revealed, with four of the five top markets all posting disappointing figures.

Despite a price war between manufacturers and an increasing array of new models arriving in showrooms, automakers appear unable to inject any enthusiasm into consumers.

Overall new car sales in Europe dropped by 2.8 per cent, following on from the 2.6 per cent fall in sales in October, confirming a stagnation in the market.

Despite an upturn in the Italian market, sales fell in the UK, Germany, Spain and France, resulting in an overall slump in the market.

Renault in particular suffered in the depressed market, with its sales falling by 15 per cent after October's drop of 12 per cent, results which have forced the company to lower its expected profit for the year.

Credit Suisse First Boston analyst Harald Hendrikse described the French manufacturer's results as "awful", adding that most automakers had found the second half of 2005 "a bit tougher" than they had hoped.


Ÿ Adfero Ltd