Two per cent rise in car sales across Western Europe 12th March 2004

Automotive sales in Western Europe enjoyed a rise for the first time in five months in February according to new figures.

Statistics released by the Brussels-based carmakers association ACEA showed that new car registrations rose to 1,033,312 vehicles last month, marking a two per cent rise on last year's figure.

However, with the rise being offset by January's fall in sales, experts are advising against over-optimism, as Societe Generale analyst Philippe Barrier explained to Reuters.

"It's still not a great month, and the figures are slightly skewed by a very strong Spanish market," he said.

"But demand is still better than in January and that sets the stage for improvement in March and perhaps a stronger second half."

Some analysts such as Commerzbank's Adam Collins noted the impact incentives had had on the automotive sales, and warned of the effect when such price cuts became unsustainable.

"It's not so much the sales figures that are important, it's the incentives driving them," Collins said.

"When Europe's biggest carmaker says it will make no more money this year then it's time to sit up and take notice."

Contrasting figures in Spain, Britain and Germany, made it difficult to discern any clear-cut conclusions about the region generally.


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