Jato has confirmed European car registrations of 1.2 million units in January 2017. The figure constitutes a 9.4% on the same month in 2016, and is the second highest January result in a decade.
Jato points to an increased number of promotions and incentives across the 29 markets analysed to explain the fact that 24 of those markets posted an increase in registrations in January.Germany experienced the highest increase of 10.5%. This can be attributed to improved economic conditions and consumer sentiment, combined with lowered interest rates. France came in second, posting a healthy increase of 10.4%. Spain, Italy and the UK all posted increases of 8.4%, 10.1% and 2.9% respectively.
.In the Netherlands there was 26.6% increase in registrations. This was down to a new tax policy, with dealers registering cars in January, to qualify for a lower tax rate of 22%, banking a 3% tax saving.
Felipe Munoz, Global Automotive Analyst at JATO Dynamics commented: “The positive results in January show that the boom of 2016 has continued into 2017. Increased incentives and stronger promotions are pushing consumers to purchase now. In the UK, anticipation of increased prices post-Brexit and the impending VED tax changes are driving growth, whilst in Germany lower interest rates are beginning to take effect. A range of economic and socio-political factors are benefiting the automotive industry and it will be interesting to see if the sector can improve upon the strong results of 2016.”
Volkswagen continue to lead the brand ranking while loosing market share. VW’s Golf and Polo lost ground to rivals offerings. The Tiguan, Europe’s best-selling SUV, helped boost the brand’s performance in January.