European car sales drop but Fiat gains

The long Easter holiday helped knock European new car registrations down 7.3 per cent in April to nearly 1.27 million vehicles, but Fiat bucked the trend with more strong gains, industry data showed yesterday.

Japanese carmakers Suzuki Motor Corp and Honda Motor Co also posted solid advances in an otherwise forgettable month for the industry.

Calendar quirks for Easter - which fell in March last year and April this year - depressed the data for registrations, which closely mirror sales.

Many markets had two fewer sales days versus a year earlier and Germany - the continent's biggest car market - had three, Brussels-based European car industry group ACEA noted.

Italy's Fiat led the gains, thanks to new models like the Grand Punto and good consumer sentiment in its domestic market. New registrations for the group rose 12 per cent year-on-year on the back of a 16.9 per cent increase at its core Fiat brand.

The group's market share rose more than a full percentage point to 7.7 per cent in April as its Alfa Romeo brand grew but Lancia lagged.

Volkswagen registrations fell 3.1 per cent but still outpaced the overall market thanks to a 4.4 per cent rise at the flagship VW brand while Audi, Seat and Skoda slipped.

Even when volume grows, carmakers still face intense pressure on margins from rising commodity prices, chronic overcapacity and a European price war that shows scant signs of easing.

Renault continued to slump, down 12.9 per cent. Surging sales of its low-cost Logan could not offset a nearly 15 per cent decline in Renault brand sales as the French carmaker gets out of unprofitable business at the expense of volume.

Registrations of DaimlerChrysler's premium brand Mercedes-Benz fell 8.8 per cent and Chrysler sales rose by 8.7 per cent, but registrations of the Smart brand of small cars fell by more than a quarter.

Asian carmakers, whose reputation for quality and affordable prices have helped them in the European market, had a mixed month.

Suzuki's figures advanced 8.9 per cent, continuing its strong showing this year and boosting its market share in April to 1.6 per cent - the same as in March - from 1.4 per cent a year earlier.

Mazda Motor Corp also showed a gain of 2.4 per cent.

South Korea's Kia Motors added 0.8 per cent, yet well short of its performance in 2005 when it was the fastest-growing brand in Europe.

Toyota brand sales eased one per cent while its Lexus premium brand shot up 63.4 per cent to 3,205 cars.

Nissan Motor Co's performance continued to suffer. Its new registrations fell almost a fifth.

US giants Ford Motor Co and General Motors both lost market share in Europe. Ford group registrations retreated 10.9 per cent, with only its Land Rover brand in positive territory.