The European Union’s car industry continues its recovery after a six-year slump. The market is expected to grow about three percent this year.
French car maker Peugeot Citroen saw its European sales volume rise in line with the market last month. No-frills vehicles – under its Dacia brand – powered a surge in Renault’s quarterly sales.
But forecasters said sales are unlikely to return to pre-crisis levels for years. Car sales in the EU increased for a seventh month in a row in March posting a 10.6 percent increase from the same period last year.
Meanwhile many European car makers are at the New York Car show. They are taking advantage of a US market that is picked up momentum since March. Alfa Romeo is making a return to the US after nearly 20 years.
Since 2010, sales in the USA have grown an average of 10 percent each year.
Weaker-than-expected sales in January and February caused cars to pile up in showrooms. Car makers are likely to offer more deals to get them sold. Improving weather and buyer incentives should boost sales as spring progresses.