Car sales in France and Spain rose strongly in December, data showed today, as drivers flocked to take advantage of vehicle trade-in schemes.
Major markets saw sales rise in 2009 as a whole after various governments introduced cash incentives for drivers to trade in old cars for new, but prospects for 2010 are less certain as subsidies start to dwindle or in some cases stop.
Full-year auto sales figures due later this week are also expected to show that China has overtaken the United States as the world's biggest car market.
The figures would cap a turbulent year for an industry that saw some manufacturers collapse into bankruptcy and new alliances and takeovers being pursued in an effort to survive.
However, French carmakers' association CCFA said new car sales in France surged 48.6 per cent in December to 228,451 vehicles as drivers flocked to take advantage of a scrappage scheme before it was cut back at the end of the year.
Renault's senior vice president for France Bernard Cambier said he expected the French market to remain strong in the first half of this year, thanks to a healthy orderbook and after "very satisfying" results in December, which saw Renault increase its market share.
"Thanks to an orderbook that is still very strong, we expect the first quarter, indeed the first two quarters, should follow the same trends as the end of 2009," he told BFM radio.
The French government cut the scrappage bonus it pays to consumers trading in old cars to €700 per vehicle from €1,000 as of January 1st but Renault will make up the difference for the next two months, Mr Cambier added.
In Spain, December car sales were up 25.1 per cent, the fourth consecutive monthly increase, buoyed by the government's anti-crisis subsidies, carmakers' association ANFAC said.
Car sales are likely to continue to rise at similar rates in the first half of 2010, but demand is expected to fall off after value-added tax is raised to 18 per cent from 16 per cent in July.
ANFAC said it expected total car sales in 2010 would be similar to last year's, which were down 17.9 percent on 2008
Reuters