Another solid sales month by Fiat and Volkswagen helped new car registrations in Europe rise 4.1 percent in March to nearly 1.79 million vehicles, industry data showed on Friday.
Calendar quirks of the Easter holiday - which fell in March last year and comes in April this year - also flattered the data for registrations, which closely mirror sales. Many markets had two extra selling days versus a year earlier and Denmark had three.
"The positive result, partly due to an extra working day in all countries...confirms the good start of the year," Brussels-based European car industry group ACEA said.
Italy's Fiat led gains, thanks to new models and robust growth in its domestic market amid good consumer sentiment. New registrations for the group rose nearly a fifth year-on-year on the back of a 28.3 percent increase at its core Fiat brand.
Germany's Volkswagen group also kept up momentum from a freshened product line-up. It generated a 9.6 percent rise in new car registrations, paced by double-digit percentage growth at the key Volkswagen brand and by Czech brand Skoda.
Despite volume growth, carmakers still face intense pressure on margins from a price war that shows no signs of abating. Even the premium segment is feeling the margin squeeze amid chronic overcapacity in the sector.
Renault continued to slump, down 4.8 percent. Surging sales of its low-cost Logan could not offset a 6.8 percent decline in Renault brand sales.
Registrations of DaimlerChrysler's premium brand Mercedes-Benz advanced 14.4 percent and Chrysler sales rose by more than a quarter, but registrations of the Smart brand of small cars fell by 23.6 percent.
Asian carmakers, whose reputation for quality and affordable prices have helped them penetrate the European market, had a mixed month.
US giants Ford Motor Co and General Motors both lost market share in Europe. Ford registrations retreated 1.3 percent, while GM group sales rose 1.7 percent.
The ACEA data reflect registrations in all European Union countries except Malta and Cyprus plus Norway, Switzerland and Iceland. Excluding the newest EU members, registrations rose 4.3 percent last month to 1.72 million vehicles.
Sales across Europe remained patchy, however, with registrations gaining briskly in Germany, Italy and Spain but falling in France and Britain.
Spurred by the first rise in retail demand in two years, registrations hit nearly 436,000 vehicles in March, surpassing 358,000 in Germany, normally Europe's biggest car market. However, the retail sales rise was offset by a fall in sales to business customers.
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