June Sales Rise in France, Italy, Spain

New-car registrations gained last month in France, Italy and Spain, according to trade groups and government agencies.

Car sales in France climbed 2% to 230,900 vehicles in June and were up 3% at 1.14 million units through the first six months of 2017, according to trade group CCFA.

Italy’s transport ministry says domestic sales jumped 13% last month to 187,600 units, the market’s best June result since 2009. But growth was driven by sales to fleets (+33%) and rental car companies (+43%). Retail sales, the most profitable among the three revenue sources, fell 3%, says import trade group UNRAE.

In Spain, sales grew 7% to 131,800 units last month, the best result in seven years. But as in Italy, most of the increase came from a 23% jump in fleet sales, according to trade association ANFAC. Retail volume last month advanced only 4%.

Analysts worry about slowing retail demand, which they consider a more accurate indicator of economic conditions than fleet sales. Carmakers frequently use the latter outlet to defend or gain market share. But fleet sales generate less per-unit revenue. And when fleet cars enter the used-car market, they depress the residual value of privately owned vehicles.