After a six-year slump, car sales in Europe are on the up and, thanks to forecast-beating results this week from Renault and Volkswagen, analysts are now reassessing their outlook on the sector.
The European car market bottomed out last year, ending years of dismal sales following the euro zone financial crisis. In September, sales across Europe were up 6.1 percent in September on the same time last year, according to the Association of European Carmakers (ACEA)
French car maker Renault and Germany’s Volkswagen both posted a strong set of results on Thursday, with turnaround in European sales adding to profits for both firms. “Are autos still cheap vs. most other sectors? We think the positive thesis on the sector is unchanged,” equity analysts at Citi led by Philip Watkins said in a recent note, who has been bullish on the sector for some time.