— Figures Include Registrations From Cyprus

FRANKFURT (MNI) – New car registrations came to 758,115 in the
Eurozone in January, down nearly 10% on the year, the Association of
European Automobile Builders (ACEA) reported on Thursday.

Economic fundamentals are not favourable for the car industry.
Consumers’ purchasing power is being undermined by costly food and
energy, rising taxes and cutbacks in social spending.

Households polled by the European Commission in January revised
down the likelihood of any major purchases being made over the next 12
months, while their intention to buy a car in the coming year remains
well below average.

The credit insurer Euler Hermes sees car sales in Europe declining
3% to 5% this year, while the sector consulting firm PwC Autofacts
expects a 10% drop.

In Germany, 210,195 new cars were registered in January, down
sharply from December, but only 700 fewer than in January 2011.
Registrations for diesel motor cars alone, accounting for just over half
the total, were 6.5% higher on the year, bolstered by commercial demand.

“I’m happy to see an increase in commercial demand in January
following the good year in 2011,” VDIK President Volker Lange said in a
press release. “I am sure that it will remain high in the coming months
and help to stabilize the car market ahead.”

French car registrations plummeted 20.7% on the year to 147,057.
After the 2.1% decline in new car sales last year, 2012 is likely to be
another difficult one for France’s car industry, CCFA spokesman Francois
Roudier indicated last month.

French carmakers polled by Insee last month reported a steep drop
in domestic and foreign orders. With inventories rising, their outlook
for near-term production fell further below the long-term average.

In Italy, registrations came to 137,119 in January, down 16.9% from
the same month one year ago. A recent Istat consumer sentiment report
showed households growing more pessimistic about the short-term economic
situation, as jobless fears rose to a near three-year high and families’
economic outlook continued to deteriorate.

Spanish registrations rose 2.5% on the year to 54,961.
Discretionary consumption in Spain is unlikely to see any sustained
recovery in the near term. Non-seasonally adjusted unemployment rose for
the sixth consecutive month in January and should maintain its upward
trend this year, as the country suffers through a prolonged recession.

Among the smaller Eurozone states, the sharpest fall was noted in
Portugal, where 47.4% fewer cars were registered compared to January
2011. At the other end, Estonia’s 14.8% rise was the strongest increase
on the year. Figures for Malta were unavailable.

— Frankfurt bureau: +49-69-720 142; email: frankfurt@marketnews.com —

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