Europe’s car sales drive on

In 2014, European car sales rose for the first time in seven years as buyers replaced aging vehicles with low-cost ones. The market’s revival from a two-decade low is set to continue in 2015.

Registrations rose 5.4%, to 13m cars, according to figures from the European Automobile Manufacturers’ Association (ACEA). Gains were pushed by ‘discount brands’ such as Renault’s Dacia and VW’s Seat and Skoda. Amid signs that economic expansion in euro countries was stalling, car-makers widened price cuts in late 2014.

“The European car market has lifted from the lows, but it’s only slowly recovering from crisis levels,” Peter Fuss, a partner at consulting company Ernst & Young’s German unit, said. “The main drivers for last year’s gains were high discounts, cheap financing, government-subsidised schemes for buying new cars and a number of new models.”