FRANKFURT (MNI) – The number of new cars registered in the Eurozone
fell by more than 7% in December to 737,153, some 4.6% below the same
period one year ago, the Association of European Automobile Builders
(ACEA) reported on Tuesday.

For 2011 as a whole, 10.1 million cars were registered, down from
10.2 million in 2010. Figures for Cyprus and Malta were unavailable.

Among the larger Eurozone states, the steepest annual fall in
December was in France, which saw registrations contract by 17.7% to
187,817. The new year is likely to be another difficult one for the car
industry, CCFA spokesman Francois Roudier indicated in a press release
earlier this month.

While Fitch Ratings expects a modest 1% decline in sales in Europe,
other analysts are more pessimistic: Euler Hermes foresees a drop of
3-5% and PwC Autofacts fears a fall of 10%. In France alone, Euler
Hermes sees sales declining 10% this year. The consumer research group
Cetelem expects domestic sales to fall by 6%.

Italy also suffered a notable fall, with new car registrations down
15.3% on the year to 111,212. A recent consumer climate survey showed
that Italians’ optimism regarding the outlook for both their personal
financial situation and the economy as a whole continued to weaken in
December. With unemployment back on an upward trend, households are
unlikely to be in a mood for big-ticket items.

The annual decline in Spain eased to 3.6%, reflecting 66,458 new
car registrations last month. As in Italy, the deteriorating labour
market is likely to weigh on Spaniards’ willingness to spend. A European
Commission survey showed jobless fears in Spain hitting a record high in
December, while the likelihood of making major purchases over the coming
year fell back, partially retracing November’s improvement.

Bucking the trend, German new car registrations rose 6.1% on the
year to 244,501. For the full year, registrations were up approximately
9% to 3.17 million, supporting the view that despite the debt crisis,
Germans remain in a spending mood and in the market for big-ticket
items.

“Registrations of international brands were particularly
successful,” said VDIK head Volker Lange in a press release earlier this
month, noting the strong gain in sales (+7%) and market share of VDIK
member brands compared to the growth of the overall market (+3%). “For
2012, VDIK expects the passenger car market to stabilize,” Lange added.

Outside of the big four economies, registrations fell fastest in
Portugal, where 60.1% fewer new cars were registered compared to
December 2010. Conversely, Belgium saw the strongest gains, with
registrations up nearly 67% on the year.

— Frankfurt bureau: +49-69-720 142; email: frankfurt@marketnews.com —

[TOPICS: M$X$$$,M$XDS$,MT$$$$]