New auto sales figures for the US have revealed that the 'Big Three' of Ford, General Motors (GM) and Chrysler all fared better than expected last month.

According to statistics released by Autodata, overall industry sales in the country fell by 34 per cent during May, lower than the 36.1 per cent predicted by Edmunds.com.

Meanwhile, the sales tracking firm's data also confirmed that the seasonally adjusted annual sales rate increased to 9.91 million vehicles, up from 9.32 million in April.

Ford posted a year-on-year decline of 24.3 per cent for May, representing its best return since July 2008 and a major improvement on the 32 per cent slide recorded in the previous month.

In particular, the automaker noted that sales of its Ford, Lincoln and Mercury brands enabled it to assume its largest market share for three years.

"Consumer confidence, a key factor in car buying, rose in May by the most in six years and is now at a level not seen since last September," said Michelle Krebs, Senior Editor of Edmunds.com.

"This good news couldn't come soon enough for the auto industry and the benefits are already coming in for most automakers."

GM, which recently filed for bankruptcy, saw its car and light truck sales fall by 29 per cent from 12 months earlier, compared to the 33 per cent slump posted in April.

Sales of the four brands scheduled to be dropped in its restructuring - Pontiac, Saturn, Saab and Hummer - suffered badly, while its Chevrolet, Buick, GMC and Cadillac sales were up 18 per cent from April to May.

Mike DiGiovanni, Head of Market Research at GM, told CNNMoney: "May results really do reflect consumer confidence about GM's long-term viability across the globe.

"May was a good sign because of all the press we've had to deal with and the positive sales results give us a good foundation to build on as we reinvent the company."

Chrysler, which entered bankruptcy on 30th April, recorded a 47 per cent sales decline during the month, better than the 53.9 per cent decrease predicted by analysts.

Fleet sales dropped by 90 per cent after the company stopped production in May, although retail sales only fell by 30 per cent on the back of dealer incentives related to its Chapter 11 filing.

"We are pleased that consumers responded to Chrysler's reorganisation by purchasing our products," said Chrysler President Jim Press in a statement.

"The uncertainty that has been surrounding Chrysler for the last few months is coming to an end and a vibrant, new company is beginning to take shape."

There was a similarly positive story in China, where sales increased by 34 per cent in May to 1.12 million units, according to the China Association of Automobile Manufacturers.

Furthermore, the data revealed that sales in the first five months of the year rose 14 per cent on a year-on-year basis to 4.96 million, the first double-digit growth in this category in 2009.

The figures were particularly buoyed by government incentives launched earlier this year, such as tax cuts for buyers of small, fuel-efficient vehicles and incentives for rural consumers.

Global Insight analyst John Zheng told the Wall Street Journal: "Based on the current momentum, [China] sales this year will easily reach ten million units. For this year, there is no question about growth."

In India, the Society of Indian Automobile Manufacturers revealed that car sales in the country hit 113,490 units in May, up 2.5 per cent from the 110,745 recorded 12 months earlier.

Although sales of trucks and buses - which can be viewed as an indicator of economic activity - slumped by 14.8 per cent, interest rate cuts and stimulus packages helped to boost industry-wide figures.

Elsewhere, Anfavea, the national automakers' association in Brazil, confirmed that sales in the country increased by 5.4 per cent in May compared to the previous month's figures.

On a year-on-year basis, sales rose by 2.1 per cent to 247,000 units during the month, while automobile output was up 6.7 per cent month-on-month but down 7.7 per cent annually.

However, there was less encouraging news in another of the emerging auto industries, Russia, where sales slumped by 58 per cent year-on-year in May, compared to a 53 per cent drop in April.

In addition, new car sales in the country have plummeted by 47 per cent so far this year, according to data compiled by the Association of European Businesses, mainly due to a lack of car loans and depressed consumer confidence.

Looking elsewhere in Europe, Germany's KBA motor vehicles agency revealed that auto sales in the country rose by 39.7 per cent on a year-on-year basis in May to 384,578 units.

The rise can largely be explained by a new subsidy launched in Berlin that entitles buyers of new models to a discount of €2,500 (£2,132) if they scrap cars at least nine years' old in exchange.

Indeed, the response to the scheme - which is set to run until the end of the year - was so impressive that the government decided to increase its funding from €1.5 billion to €5 billion.

However, Morgan Stanley Analyst Adam Jonas sounded a note of caution, predicting that volumes will slide by up to 30 per cent annually in May 2010 when demand eventually subsides.

"People know it's steroids, it's not real. It's pleasure upfront with the pain coming next year," he told Reuters.

Moving to the UK, the number of new cars sold during May was 134,858 units, representing a 24.8 per cent annual decline and the 13th consecutive month of decreases.

Furthermore, a total of 748,691 vehicles were sold across the country in the first five months of 2009, a figure which is 27.9 per cent lower than the equivalent period last year.

According to the Society of Motor Manufacturers and Traders (SMMT), the figures do not incorporate the new car scrappage incentive, which came into force on 18th May.

"We have seen an encouraging start to the scrappage incentive scheme with 35,000 orders being placed since it was announced, although it will take time to feed into registration figures," said SMMT Chief Executive Paul Everitt.

Meanwhile, French manufacturers' association CCFA confirmed that new car sales in the country were up by 11.9 per cent to 206,387 units in May, although year-to-date registrations were down 1.4 per cent.

The body explained that volumes were boosted by scrappage schemes for buyers exchanging old models for more modern, greener vehicles, plus a new car licence plate system.

Struggling French automaker Peugeot Citroen saw sales jump by 20.7 per cent annually, while Renault recorded an overall decline of 1.7 per cent.

Finally, automobile production in Mexico fell by 39.4 per cent in May on a year-on-year basis, impacted badly by declining US demand and the swine flu outbreak.

According to the Mexican Automotive Industry Association (AMIA), vehicle exports also dropped to 83,910 units, some 44.3 per cent lower than the figure from 12 months earlier.

"We're looking at figures that we haven't seen, depending on which month you choose, in the past 12 or 13 years," said AMIA Head Eduardo Solis.

"The situation is dramatically difficult. That's a reflection of consumer uncertainty and undoubtedly the effect of the health crisis."

Sources:

UPDATE 1-Ford U.S. sales fall 24.2 percent in May (02/06/09)

Battered auto sales show improvement (02/06/09)

China Auto Sales Soar (10/06/09)

India's May car sales rise 2.5 pct y/y -industry (08/06/09)

Brazil auto sales up 5.4 pct in May-Anfavea (04/06/09)

Car sales in Russia fall 58 pct in May - AEB (08/06/09)

UPDATE 2-German May car sales up 40 pct on tax "steroids" (03/06/09)

UK new car sales 25% lower in May (04/06/09)

UPDATE 1-French May new car sales rise 11.9 percent-CCFA (02/06/09)

UPDATE 2-Mexico automobile production, exports slump in May (08/06/09)

Ÿ Adfero Ltd