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Paris. – European car sales rose 4,6 percent in October, marking the first consecutive monthly gain in two years, as a government cash-for-clunkers programme pushed a delivery surge in Spain. Registrations advanced to 1,04 million new vehicles last month from 999 266 a year earlier, the Brussels-based European Automobile Manufacturers Association said yesterday in a statement. That narrowed the drop this year to 3,1 percent, for 10,4 million total deliveries. September sales rose 5,5 percent.

A record six-quarter recession in the 17 countries sharing the euro ended in the three months through June, and consumer confidence in the area rose in October.

Demand gained in four of Europe’s top five car markets, including a 34 percent jump in Spain. Models introduced since late 2012 include Renault SAs first compact crossover, the Captur, and the latest version of General Motors Co.’s Opel Insignia.

“I’ve got a feeling that things have stopped worsening,” Jean-Francois Belorgey, who runs consulting company EY’s automotive business in France, said.

“But this might not be enough to tempt people to buy new cars on the long run. Italy is very unsteady, Spain is slowly recovering and France is facing budgetary problems. Only when unemployment starts falling will we see the market really pick up.”

The back-to-back increases were the first in the region since August and September 2011, ACEA Economics and Statistics Director Quynh-Nhu Huynh said in an e-mail.

The European car market is still set for a sixth straight full-year contraction following a sovereign-debt crisis that triggered the euro area’s recession. The region’s economic recovery came close to a halt in the third quarter, and unemployment is at a record-high 12,2 percent. Even so, among Europe’s five biggest car markets, registrations increased last month in Germany, the UK and France, as well as Spain. Demand declined in Italy.

European sales at Volkswagen AG rose 5,7 percent in October, propelled by jumps of 24 percent at the Skoda brand and 15 percent at the Seat nameplate, while registrations gained 1,4 percent at the namesake VW marque. – Bloomberg.

The Audi division, the world’s second-biggest maker of luxury cars, posted a 0.5 percent decline.
Dacia Jump

Renault, based in the Paris suburb of Boulogne-Billancourt, sold 14 percent more cars in Europe last month. Demand at the entry-level Dacia unit, which has revised the Sandero hatchback and Logan sedan, jumped 16 percent, while sales at the main Renault brand rose 13 percent.

GM posted a 6.2 percent European sales increase as the Chevrolet division sold 6.6 percent more cars and demand at the European nameplates Opel and Vauxhall rose 6.1 percent.

Models that Detroit-based GM has begun selling in Europe in the past year include the South Korean-made Mokka compact sport-utility vehicle, which Opel will produce in Spain next year, and the Adam city car.

“Car sales have been falling for so long that the aging fleet in Europe alone could be a reason for a moderate pick up,” Belorgey said. “New sport-utility vehicles being introduced by several companies may also be pushing sales.”
Luxury Producers

European sales at Mercedes-Benz, the world’s third-biggest maker of luxury vehicles, rose 8.5 percent last month.
The gain more than offset a 3.6 percent drop at the Smart city-car unit to boost group registrations at Stuttgart, Germany-based parent company Daimler AG (DAI) by 7 percent.

Bayerische Motoren Werke AG (BMW), the global premium-car market leader, sold 0.3 percent more cars in Europe.
Mercedes has won customers with a refreshed compact lineup, including the all-new CLA-Class coupe, as well as a revamp of the up-market E-Class sedan.

Munich-based BMW began selling the 4-Series coupe, which shares underpinnings with its best-selling 3-Series sedan, in September. A new generation of its X5 SUV is entering dealerships this month.

October European car sales also rose at Japanese producers Toyota Motor Corp. (7203), which posted a 17 percent jump in registrations, and Nissan Motor Co. (7201), with a 5.1 percent gain.

European registrations declined 0.7 percent at Paris-based PSA Peugeot Citroen (UG), the region’s biggest carmaker; 0.2 percent at Dearborn, Michigan-based Ford Motor Co. (F); 7.3 percent at Italian manufacturer Fiat SpA (F); and 2.3 percent at South Korean producer Hyundai Motor Co. (005380) -Bloomberg