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A latest IHS Automotive report shows that the United Kingdom was the biggest car market in Europe in March 2016. The passenger car market in the UK reached its highest monthly total in March, increasing by 5.3 percent y/y to 518,707 units. Overall, car registrations in the last quarter rose 5.1 percent y/y to 771,780 units.

According to a statement released on Wednesday by IHS Automotive, the global automotive intelligence unit of IHS, passenger car sales in Western Europe recorded a strong performance in March as customers splurged on cars during the Easter Holidays. The report said cheap credit, huge competition between OEMs and a strong replacement demand have been the key to higher sales in the Western European market.

Car sales in the Western Europe rose by 5.1 percent year-on-year to 1,639,1568 units in March, bringing the seasonally adjusted annual rate (SAAR) for the region to 14 million units.

In Germany, car sales were completely flat in March at 322,913 units, indicating a positive and stable market development with combined sales for the first quarter rising by 4.5 percent y/y to 791,424 units, according to the latest data released by the KBA.

As for the French market, the passenger car category's monthly registrations were up 7.5 percent y/y to 211,264 units. This brings first-quarter registrations to 516,392 units, an increase of 8.2 percent y/y.

The Italian passenger car showed momentum in March with car registrations rising 17.4 percent y/y to 190,426 units. This growth brings car registrations for the first quarter to 519,256 units, a gain of 20.8 percent y/y.

After a 30-month run of constant growth, the Spanish market recorded a dip during March, falling 0.7 percent y/y to 111,512 units. However, gains in the first two months of the year put its quarterly rise at 6.9 percent y/y to 285,495 units.

IHS Automotive forecasts that Western European passenger car market will continue to show stronger growth in 2016 because of the robust macroeconomics in the five biggest markets in the region. For the 2016 full year, IHS forecasts a 3 percent y/y increase in Western Europe to 13.6 million units.

In Germany, IHS forecasts that passenger car sales will increase by 2.5 percent y/y to 3.29 million units in 2016. French car registrations are expected to grow 3 percent y/y to 1.95 million registrations. The Italian passenger car market will show an increase of 10 percent y/y to around 1.74 million units. The Spanish car market will grow 4.5 percent y/y to 1.08 units while the car market in the United Kingdom will grow 2 percent y/y to 2.69 million units.