BMW's M3 in Mission: Impossible -- Rouge Nation
The biggest car markets in Europe — France, Germany, Italy, Spain and Britain have all seen rising sales in each month of 2015, according to a report by JATO Dynamics.
For instance, BMW's sales rose 7.7 percent in the first quarter of 2015, compared to the year-ago period. Despite the economic turmoil roiling the continent, Europe still remains a key luxury market, and rising car sales in struggling nations may point to recovery.
"The European new car market has now been growing for seven consecutive quarters, demonstrating strong consumer confidence in the motor industry and the vehicles it produces," said Brian Walters, vice president of data at JATO Dynamics, London.
JATO Dynamics drew data from publicly available brand and national reports.
Healthy signs
Several countries posted explosive growth in the first quarter of 2015.
Spain saw car sales rise 31.2 percent and Ireland registered a 29.8 percent rise. Other countries in the 20 percent range include Czech Republic, Poland and Portugal.
Audi Spyder
Countries in the 10-20 percent range include Italy, Latvia, Lithuania, Romania, Slovenia and Sweden. Even Greece, a country whose economy has been brutalized by austerity policies imposed by the European Union, saw vehicle sales rise 4.8 percent in the first quarter.
The only countries who saw sales decline are Austria, Finland, Luxembourg, Norway and Serbia.
Audi saw sales across the continent rise to 191,903 vehicles in the first three months of 2015. BMW sales rose to 181,901 in this period.
Production facility of BMW i8
Overall, the sales numbers indicate that consumer confidence may be returning to Europe, but they could also be figures isolated from the broader recovery.
In the details
While the broad trends of the industry are essential, other researchers have explored the granular motivations of the car market.
For instance, the top 15 percent of influencers generate 59 percent of word of mouth leads for automotive brands, according to a report by Foresight Research.
The report also found that luxury consumers are more likely to influence and be influenced by word of mouth than buyers in other categories. As brands find more innovative ways to leverage consumer voices, the impact of word of mouth will only grow (see story).
Also, prior brand experience influences 62 percent of consumer purchases, followed by dealership experiences at 59 percent, according to another report by Foresight Research.
The report also found that word of mouth and brochures are waning in their capacity to influence. However, luxury consumers, who are perhaps more discerning, are influenced by more possible channels, including auto shows (see story).
For brands looking to boost sales by breaking into new markets, the initial signs of 2015 should be heartening.
"The European new car market has now been growing for seven consecutive quarters, demonstrating strong consumer confidence in the motor industry and the vehicles it produces," Mr. Walters said.
"New products are finding strong demand, while the increased total market also means greater sales of the many longer-standing models that remain competitive and desirable in this complex market," he said.
Final Take
Joe McCarthy, staff reporter on Luxury Daily, New York