Fuel misers lead European recovery

The depressed Euro car market is showing signs of recovery, according to analysts Jato Dynamics, with low-emission vehicles leading the way.

Jato spokesman Gareth Hession said cars such as the Renault Megane increased sales to fifth place in June, thanks to its success in the Netherlands where the 1.5dCi 110 "Energy ECO2'' model has significant tax advantages due to its low 90g/km CO2 emissions. It was up 3.5 per cent to 23,692.

"The performance of the Megane demonstrates how CO2 taxation can have a major impact on the customer's choice of car,'' Hession said. "With the EU pushing for lower CO2 emissions for 2020, this is a trend that will continue to influence the market." Renault Australia spokeswoman Emily Ambrosy says they are "constantly reviewing our line-up and the most suitable engines for our customers".

"We are currently evaluating energy engines for Australia and intend to introduce them with future models such as Clio IV," she says. Volkswagen Golf was again the top-selling vehicle in Europe helping VW retain its place at number one ahead of Opel/Vauxhall and Renault.

Of the top 10 brands, only Volkswagen, Audi and BMW recorded increased sales in June, driven largely by new and revised models including VW's Up, Tiguan and Beetle, and Audi's Q3 and A6. Just outside the top 10, Skoda, Toyota, Hyundai, Nissan and Kia, recorded improved sales, with Hyundai up 23.2 per cent and Kia up 18.9 per cent.

The European new car market was down 6.6 per cent in the first half of the year, but Jato research shows hopeful signs in June that the decline is slowing with monthly sales down only 2 per cent. Eleven of the 30 European countries including Germany and Great Britain, experienced growth in June.

The biggest increase was in the Netherlands, up 31.7 per cent to 76,813, while Italy experienced the biggest drop, down 24.5 per cent to 128,967.

Top 10 brands

Top 10 models