June Car Sales Slip 2% in Europe

New-car registrations across Europe declined to 1.25 million in June from 1.28 million a year earlier, ACEA reports. A 3% decline in sales within the EU was partly offset by increases in the region's lesser markets.

The trade group says volume through the first half of 2012 dropped 7% to 6.64 million vehicles in the EU and 6% to 6.90 million units for the entire region.

Sales in Germany grew 3% to 296,700 units in June and were up 1% at 1.63 million in the first half of the year. Demand in the U.K. rose almost 4% to 189,500 vehicles in June and 3% to 1.06 million units in the first half of the year.

Sales declined in Europe's other major markets. June sales in France slipped 1% to 208,900 vehicles and were down 14% to 1.05 million units for the January-June period. Demand in Italy plunged 24% to 128,400 units last month and 20% to 814,200 units in January-June.

Last month the Netherlands surpassed Spain to become western Europe's fifth-largest car market, as sales surged 52% to 76,800 units. Volume in Spain last month dropped 12% to 73,300 vehicles.

Volkswagen was the only major carmaker in Europe to post a year-on-year gain in June. Its group sales rose 4% to 300,900 units last month but were down about 1% at 1.66 million in the first half of 2012.

June sales fell 8% to 151,900 units at PSA, 4% to 115,000 units at Renault, 9% to 109,800 units at General Motors, 17% to 85,500 units at Ford and 17% to 79,900 units at Fiat.

Luxury brands continue to outperform the overall market in Europe. BMW sales in Europe advanced less than 1% to 82,500 units last month and were down less than 1% at 420,800 units for the January-June period. Audi sales rose 9% to 69,900 vehicles in June and were up 5% at 377,700 units in the first half of the year. Mercedes-Benz sales fell 3% to 57,700 units in June but were up 2% at 309,500 vehicles in January-June.