November car sales data paved the way for a strong year-end in major European markets, although a weak comparison base last year, and subsidies that will run out soon, mean the longer-term future for carmakers remains unclear.
European governments stepped in to help struggling carmakers earlier this year, implementing scrapping incentive schemes whereby drivers get cash bonuses for trading in old cars for new models.
However, as the schemes gradually dwindle - the scheme in Germany, Europe's largest car market, has already finished - carmakers are worried about a second sales dip.
In France, car sales rose 48.4% in November and 7.6% in the first 11 months of the year, carmakers' association the CCFA said.
'November 2008 was the low point of the cycle,' CCFA President Xavier Fels said.
'The question of the low basis of comparison is very important,' Fels added, referring to the last quarter of 2008, when carmakers were forced to slash production drastically as demand for new cars nose-dived, in an attempt to limit the build-up of costly stocks of unsold vehicles.
Meanwhile, Italian industry minister Claudio Scajola said after meeting Fiat CEO Sergio Marchionne that Italy car sales rose 30% in November.
Fiat's Marchionne said after the meeting tha Fiat was sticking to its plan to stop production at its Termini Imerese plant and that an annual car production figure in Italy of 900,000 units was 'not astronomical'.
In Spain, which introduced its scrapping incentive scheme in May, car sales rose 37.3% in November.
SIMI repeats scrappage call
The society which represents the motor industry says the number of new cars registered in November was 520, down 19.3% on the same month last year.
The Society of the Irish Motor Industry (SIMI) said the figures for the first 11 months of the year are down more than 60% on the same period last year.
SIMI director general Alan Nolan said that although the November fall was smaller than in previous months, the November 2008 figure was already down 54% on the previous year.
Mr Nolan repeated the industry's call for a scrappage scheme to be introduced in the Budget. 'The recent closure of the highly respected and long established EP Mooney dealership group has highlighted the need for some urgent stimulus for car sale,' he said.
