A number of major automakers have reported better-than-expected sales in the US for June as the industry finally showed signs of commencing a recovery.

Ford was the main mover, recording a decline of 10.9 per cent for the month, which slotted in at the top end of its prediction for a drop of between ten and 20 per cent.

Nissan saw a 23.2 per cent fall, while Toyota's sales were down by 31.9 per cent and financially-troubled Chrysler and General Motors (GM) posted decreases of 42 per cent and 34 per cent respectively.

Furthermore, experts have confirmed that industry-wide sales fell by 28 per cent on a year-on-year basis in June, which stands as the best figure since last September.

"I wouldn't say that the industry has done a 180 [degree turn], but I would say that in the last 60 days the industry has stabilised," Al Castignetti, Nissan's US General Manager, told Reuters.

Meanwhile, Volkswagen confirmed that its US sales fell by 18 per cent annually in June, although its new cleaner diesel vehicles - which use pgms to help reduce harmful emissions - enjoyed a 26 per cent share in the total figure.

"It appears that US consumers are starting to realise the many benefits of today's clean diesels - vehicles that attain more than 30 per cent better fuel economy while emitting 25 per cent less greenhouse [gases]," said Volkswagen of America Chief Operating Officer Mark Barnes.

Moving to the UK, the total auto production figure for May was 67,745 units, which represented a 43 per cent decline from the same period 12 months earlier.

However, it was also the smallest monthly decrease of 2009 so far and Paul Everitt, Chief Executive of the Society of Motor Manufacturers and Traders, said that the country's "cash for bangers" scheme is starting to have a "positive impact".

"Prompt action by manufacturers to realign supply with demand has been painful, but was necessary. There is now a direct link between demand in the marketplace and production volumes," he added.

Similar schemes encouraging consumers to trade in their old vehicles for scrappage in exchange for discounts on new cars are in place across Europe.

In France, this made a significant impression on auto sales for June, with new car registrations increasing by 7.1 per cent, with 20 per cent of overall sales accounted for by the scheme.

However, Xavier Fels, President of industry association CCFA, warned that the end of initiative would be "delicate" and called for the government to phase it out one step at a time.

There was a similarly optimistic outlook in Spain, where its scrappage scheme saw the rate of decline in sales hit 15.9 per cent in June, compared to the figure of 38.7 per cent in May.

In addition, orders were up by nine per cent in Italy and sales increased by 12.4 per cent, representing the first year-on-year monthly rise since the government implemented its own incentives in February.

Germany's scrappage scheme appears to stimulating the most interest, after the VDIK car importers' association confirmed that new registrations were up by 40 per cent to 427,000 units in June.

The rise means that new registrations in the first half of 2009 have increased by 26 per cent, while auto group VDA has increased its annual forecast from 3.1 million units to 3.5 million units.

However, VDIK warned in a statement: "One should expect that growth in the months ahead will not reach the record levels of the first half."

Meanwhile, Indian consumers were lured by a range of new models on the market and sliding borrowing costs in June, contributing to a 7.8 per cent year-on-year sales increase to 107,531 cars.

Dilip Chenoy, Director General of the Society of Indian Automobile Manufacturers, told Reuters: "It is a kind of pent-up demand. A lot of sales in the two-wheeler and passenger car segment [are] led by new model sales."

The auto group added that sales of trucks and buses in the country - often used as an indicator of economic activity - declined by 12.5 per cent to 36,193 units.

Official figures have also confirmed that sales across the Japanese auto industry slumped by 14.5 per cent during June - the ninth consecutive double-digit monthly fall - although analysts noted that the speed of decline is decreasing.

Elsewhere, Chinese auto sales rose by 36.5 per cent on a year-on-year basis to 1.14 million units over the course of the month - the largest monthly jump so far this year.

According to new data released by the China Association of Automobile Manufacturers (CAAM), first-half sales also increased by 17.7 per cent to 6.10 million units.

The semi-official industry group now believes the country will sell over 11 million units this year, a rise of 17.3 per cent from the 2008 figure and up from its original prediction of 10.2 million, the Xinhua news agency reports.

Furthermore, the CAAM revealed that passenger-vehicle sales increased by 48 per cent to 872,900 units - the sharpest rise since February 2006 - as subsidies and tax cuts devised in Beijing began to take effect.

GM has also confirmed that it achieved record sales of 841,442 units in the first half of 2009 in China, representing a rise of 38 per cent from the equivalent period last year.

The news comes after the company, which filed for bankruptcy recently, reported that its sales had increased by 75 per cent year-on-year in the country during May.

"Thanks to government stimulus measures on the auto industry and the rising demand in subordinate cities and rural areas, China's auto market [has] seen a strong growth and GM's products [have] been very popular," GM China Group President and Managing Director Kevin Wale told Xinhua.

Finally, Brazilian national automakers' association Anfavea confirmed that auto sales in the country surged to a record 300,002 units in June, representing a 17.2 per cent leap from May and a 21.5 per cent increase from June 2008.

Production rose by 8.4 per cent from the previous month to 283,900 units, although this was also an 8.2 per cent decline on a year-on-year basis.

The improvement in sales can largely be explained by a raft of tax breaks, lower prices and gradually improving confidence in the economy.

"There has been an improvement overall in terms and conditions of credit and confidence, turning in another healthy month for the sector," Alexandre Andrade, Auto Industry Analyst at consulting firm Tendencias, told Reuters.

Sources:

June auto sales seen showing signs of stability (30/06/09)

U.S. Auto Sales Slide as GM, Toyota Miss Estimates (Update1) (01/07/09)

U.S. June auto sales tumble, Ford takes share (01/07/09)

Clean Diesel Fuels Volkswagen's June Sales (01/07/09)

GM: H1 sales hit historical high in China (01/07/09)

Car industry shows signs of recovery (19/06/09)

UPDATE 1-Scrappage scheme boosts French June car sales (01/07/09)

WRAPUP 2-Subsidies boost European car sales (01/07/09)

UPDATE 2-German new car registrations soar 40 pct in June (02/07/09)

UPDATE 1-India car sales rise 5th month, new models help (08/07/09)

China Car Sales Jump 48% on Economic Stimulus, Most Since 2006 (09/07/09)

2nd UPDATE:China Jun Auto Sales +36.5%; May Exceed 11M In 09 (09/07/09)

UPDATE 1-Brazil auto output rises for 2nd month in June (06/07/09)

UPDATE 3-Mexico's June auto slump raises recovery doubts (13/07/09)

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