European new cars sales are up 6.2% from year-ago levels after volume and premium leaders recorded stronger demand in key markets. Ciara Lee reports.
Motoring on for the 14th straight month of growth - the European car market continues to gather speed. New car sales rose over six percent in October. VW, Europe's biggest automaker, and PSA Peugeot Citroen all grew while luxury nameplates BMW and Daimler were also up, with strong demand in key markets. Alastair McCaig is from IG. (SOUNDBITE) (English) IG MARKET COMMENTATOR, ALASTAIR MCCAIG, SAYING: "I think the real positives may be felt in the expanding Asian markets and I think to a certain extent that's where investors are keeping an eye on to see how the likes of Chinese demand is maintained for European car manufacturers." Germany, Europe's biggest single market was up 3.7 percent while second-placed UK jumped 14 percent. Demand picked up in all major countries except France which by contrast slipped 3. 8 percent - a reflection of near-stagnant growth in the euro zone's second-biggest economy. (SOUNDBITE) (English) IG MARKET COMMENTATOR, ALASTAIR MCCAIG, SAYING: "I think one road bump on the horizon is maybe the weakness seen in France but you do feel that when it comes to car sales figures that to a certain extent in this day and age it is a necessity from a business sense as much as anything else." The industry still remains well short of its pre-crisis peak and is only recently recovering from a 6 year slump. The solid jump in sales means the region's auto sector could be driving towards its first year of growth since before the financial crisis.