Recovery in European new car sales continued in January

[HAMBURG] Passenger car registrations in Germany, Europe's largest auto market, rose about 2.5 per cent in January, a source familiar with the matter told Reuters, adding to signs that a rebound in demand in 2014 has continued in much of Europe this year.

German registrations totalled around 210,000 vehicles last month, the source said on Tuesday.

Industry data released earlier this week showed that in Spain and France, January sales rose 27.5 per cent and 5.9 per cent respectively. In Italy, new car sales rose 10.9 per cent last month.

"European auto sales are off to a strong start," analysts at Evercore ISI said in a note on Tuesday commenting on European auto sales figures.

"We believe that improving European consumer sentiment and disposable income can benefit not just European car sales but also earnings and, hence, equity prices."

European Union passenger car registrations rose 5.7 per cent last year, thanks to government incentives, tax breaks and a consumer shift to cheaper brands which helped the market to return to growth following six consecutive years of declining sales.

REUTERS