Europe’s Car Sales Rise in July, Fall in August

New registrations of passenger vehicles across Europe grew 5% year on year to 1.02 million units in July, according to ACEA. But the industry group reports that August sales dropped 5% to 687,000 vehicles compared to August 2012.

Volume for the year through July declined 5% to 7.46 million units. Results for the year through August fell 5% to 8.14 million.

In July, demand climbed 2% to 253,100 units in Germany, 1% to 150,200 in France, 15% to 75,000 in Spain and nearly 13% to 162,200 in the U.K. Sales in Italy slid 2% to 107,800 units.

July's gain was led by Volkswagen (+4% to 258,400 units), Renault (+9% to 91,800), General Motors (+8% to 81,000) and Ford (+(% to 76,000). Fiat's sales slipped 1% to 62,400 vehicles.

Almost all luxury brands reported big gains in July. They were led by BMW (+12% to 60,900 vehicles), Mercedes-Benz (+17% to 51,800) and Jaguar Land Rover (+4% to 8,900). VW's Audi brand was virtually flat at 59,000 units.

But July's gains were erased in August. Year-on-year demand fell in Germany (-6% to 214,000 vehicles), France (-11% to 86,000), Spain (-18% to 39,900) and Italy (-7% to 53,000). The U.K. was a notable exception: Its sales jumped another 11% to 65,900 units.

August sales dropped for most of Europe's mass-market producers. Volume fell 11% to 180,100 units at VW, 18% to 66,900 units at PSA, 5% to 35,800 units at Fiat and 1% to 42,700 units at Ford.

Sales continued to climb last month for Renault (+6% to 65,500 units) and GM (+1% to 54,200). European luxury brands also rose again. BMW gained 10% to 47,000 units, Mercedes-Benz advanced 9% to 38,900 units and JLR grew 7% to 4,300 units. But Audi sales fell 6% to 44,300 vehicles last month.