Sales of new passenger cars rose by 25.0% y/y to 14,215 units in November, the car importer association (MGE) reported. Car sales growth picked up from the 14.0% y/y growth in the previous month and was the second strongest in the year so far. In cumulative terms, car sales were up by 11.7% y/y to 141,769 vehicles in Jan-Nov. The MGE had a 160,000 sales projection for the full year but it revised it down to 155,000 in light of the latest data. The strong growth in November alone was likely supported in part by the government demographic program, which includes subsidies for family car purchases, in our view. The MGE commented that the subsidy element has been very successful with more than 17,000 applications by the end of November, exceeding expectations. Despite that, we positively view the data as indicating strong consumer confidence and propensity to spend.
Sales of new light commercial vehicles (LCV) were up by 18.1% y/y to 23,544 units in Jan-Nov, according to the report.