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Europe's car recovery continues as volume, luxury brands gain

New car sales in the European Union and the countries of the European Free Trade Area increased to 1.113 million last month
New car sales in the European Union and the countries of the European Free Trade Area increased to 1.113 million last month

European new car sales rose 6.2% in October from the same time last year as premium leaders including the Volkswagen and BMW groups recorded stronger demand in key markets. 

Passenger-car registrations in the European Union and the countries of the European Free Trade Area (EFTA) increased to 1.113 million vehicles last month.

This was up from 1.047 million a year earlier, the Association of European Carmakers (ACEA) said today. 

Demand picked up in all major countries except France and rose in seven of the region's top-10 markets, according to ACEA. 

Europe's car market has grown for 14 months in a row after a six-year slump but remains well short of its peak before the financial crisis. 

But the 6.5% gain in the 28-nation EU was the second-highest percentage increase in a month of October in that region in the past eight years, the data showed. 

Germany, Europe's biggest single market and home of VW, BMW and Daimler was up 3.7% to 275,320 while second-placed UK jumped 14.2% to 179,714. 

By contrast, Europe's third biggest France slipped 3.8%, a reflection of near-stagnant growth in the euro zone's second-biggest economy. 

Year-to-date deliveries in the EU plus EFTA region rose 5.9% to 11.02 million vehicles from 10.41 million in the year-earlier period, ACEA data showed. 

Volkswagen, Europe's biggest car maker, and PSA Peugeot Citroen rose 6.9% and 1.1% respectively while luxury nameplates BMW and Daimler were up 9.4% and 2.2%. 

The only major group to post lower sales in October was General Motors, grappling with a 5.1% drop as the withdrawal of the Chevrolet brand from Europe outweighed a 12% gain by the Opel nameplate.