FRANKFURT (MNI) – Eurozone new car registrations rose by 116,289 on
the month in September, cutting the annual change to +1.3% from August’s
8.0% gain, the Association of European Automobile Builders (ACEA)
reported on Tuesday.

Excluding Cyprus and Malta, data for which are unavailable, 810,030
new cars were registered in September. Between January and September,
the number of registrations reached 7.76 million, down 0.8% compared to
the same period one year ago.

For the European Union as a whole, new car sales rose 0.7% on the
year to 1.23 million.

German registrations were up 8.1% on the year in September to
280,689 and 10.8% higher y/y over the first nine months of the year.

Consumers’ willingness to buy “remains at an extremely good level,”
the GfK Group said in releasing its September consumer confidence index
at the end of last month, while a recent European Commission survey
noted that households’ view of their upcoming financial situation
remained better than average in September after reaching a peak in early
summer.

In France, new car registrations lost ground on the year in
September, but the 1.4% annual decline was still viewed as resilient
given that the country’s car-scrapping scheme was boosting sales one
year ago. Between January and September, registrations increased 0.2%
y/y.

“This is much better than what we originally expected, a CCFA
spokesperson said earlier this month.

A surge in jobless fears and a deterioration in households’
financial situation, however, could well limit any big-ticket purchases
in France in the near term, including car purchases.

A recent INSEE consumer morale survey showed sentiment falling in
September to its lowest level since the economy emerged from recession,
as consumers grew more pessimistic about their future finances and
overall living conditions.

Italian new car registrations fell 5.7% on the year in September
and were down 11.3% y/y between January and September.

Like in France, Italians’ fears of being unemployed, which rose to
an 18-month high according to a Commission poll, is likely to shift
spending priorities away from non-essentials.

In Spain, car sales dipped 1.3% y/y in September, bringing
year-to-date levels down 20.7% compared to the same period in 2010.

With Spanish unemployment still at over 20%, car sales there are
also likely to remain weak.

Outside of the four larger economies of the Eurozone, the strongest
annual jump was noted in Estonia, were car registrations rose 56.6%.
Conversely, Ireland led the way in declines, with sales down 35.3% y/y.

–Frankfurt Bureau tel.: +49-69-720 142, email: frankfurt@marketnews.com

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