UK Helps Boost Car Sales Growth In Europe

Car (HKSE: 0699.HK - news) sales in Europe have risen for the 18th month in a row with the UK seeing double-digit growth.

Figures from the Association of European Carmakers (ACEA) show sales were up by 7.3% in February with 924,440 new registrations.

All the major markets grew with sales in Spain up 26%, 13.2% in Italy and 12% in the UK.

But despite continued improvements in sales, the market has not yet returned to its pre-financial crisis peak.

The figures also reveal a shift in demand from no-frills makes to mass market brands.

Volkswagen (Other OTC: VLKAF - news) saw an 11% rise in its sales and remains the market leader with quarter of the European market.

While sales of Skoda cars grew by 8%, this signalled a slowdown in demand from 21.5% in February last year.