FRANKFURT (MNI) – Passenger car registrations in the Eurozone
(excluding Cyprus and Malta) in April were 10.2% lower on the year, the
European Automobile Manufacturers’ Association (ACEA) reported Monday.

In the EU15, which includes Sweden, the United Kingdom and Denmark,
but excludes Slovakia and Slovenia, registrations fell 6.5% on the year.

Among major Eurozone countries, German registrations fell 31.7% on
the year, reflecting the base effect from last year’s subsidy-induced
buying binge. Compared however to 2008, new registrations in April were
down only 10.2%, industry group VDIK reported.

French car registrations were up almost 2.0% on the year (+1.9%),
partly reflecting the base effect of a sharp drop a year earlier.

Despite four straight quarters of economic recovery, neither German
nor French consumers seem terribly eager to spend big money on durable
goods. While the French are concerned about the prospects of rising
unemployment and lower real incomes, Germans are worried about a hike in
energy costs and consumer prices in general.

In addition, Germany’s car-scrapping premium enticed many car
buyers to make their purchases last year, thus depressing this year’s
totals. The French premium dropped from E1000 to E700 on January 1 and
will drop again to E500 on July 1. Thus, a sprint to buy cars in late
spring cannot be ruled out.

Among other major European economies, car registrations fell in
Italy by 15.7% on the year in April, while Spanish car registrations,
still underpinned by a government-supported subsidy program, were 39.3%
higher on the year.

While domestic demand for new cars is likely to be weak in many
European countries this year, car makers should benefit from a recovery
in the global economy, particularly in dynamic emerging markets.

In Germany, where 75% of vehicles made domestically are sold
abroad, exports were 58% above the previous-year’s level in April — the
seventh straight month with an annual gain, according to industry
association VDA.

–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com

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