New car sales in western Europe rose for the second month in a row in July driven by government scrappage schemes.
Sales of new cars in western Europe rose 5% last month in a year-on-year comparison to 1.22 million vehicles, the German auto federation (VDA) said in a statement, as state subsidies helped to offset the global recession.
However eastern Europe continued to suffer. Turnover in the former communist states of the European Union fell 21% compared to July 2008 as the economic crisis continued to spread through the region.
Those losses dragged on total car sales in the EU, leading to an only 3% rise year-on-year to a total of 1.297 million vehicles.
In June, the European Automobile Manufacturers' Association (ACEA) reported a 2.4% increase in new car sales in Europe, halting a 14-month decline.
The VDA attributed the rise in turnover in July to ‘a stabilisation of conditions and several sales enticement programmes’.
In a country-by-country breakdown, Germany posted a stunning 30% increase in sales thanks to the runaway success of car-replacement premiums.
Meanwhile turnover rose 6% in Italy, 3% in France and 2% in Britain.
Without Germany's strength, new car sales in western Europe would have declined 2% in July, the VDA said.
