New figures have suggested that demand for new cars in Europe is beginning to slow during 2007.

European automakers association, Acea, has reported a mixed showing in the European Union car market for 2007, with the market anticipated to remain broadly flat over the course of the year.

In a statement, Acea said: "European automobile demand in 2007 is likely to remain at virtually the same level as last year."

Germany is expected to see new sales recover later in the year and into 2008, thanks to the introduction of new models, while the French market is also anticipated to enjoy a mild recovery.

However, these increases will be offset by sluggish sales in Spain and the UK, which are expected to slow behind the overall trend.

The EU's newest member states enjoyed a strong start to the year, according to Acea, with new car registrations increasing by 15 per cent over the course of the first quarter, but western Europe saw sales drop by one per cent, which included a ten per cent fall in the sale of new cars in Germany.

Sources:

European new car demand seen stalling in 2007, 19/06/07
http://www.eubusiness.com/Transport/1182268819.83

EU27 motor vehicle industry defends ground, 19/06/07
http://www.easier.com/view/News/Motoring/article-122813.html

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