MILAN (Bloomberg) -- European new-car sales rose a third consecutive month in November, the longest period of gains in four years, as demand for autos from Volkswagen and Renault contributed to signs that an industrywide decline is ending.
Registrations in the EU and EFTA markets increased 0.9 percent in November to 975,281 vehicles from 966,421 a year earlier, industry association ACEA said today in a statement.
The growth followed gains of 4.6 percent in October and 5.5 percent in September.
The economy of the 17 nations sharing the euro will probably expand this quarter, continuing growth after a six- quarter recession in the region ended in the three months through June, according to analysts surveyed by Bloomberg.
New vehicles boosting car sales in Europe include the Golf hatchback and Skoda Rapid Spaceback wagon at Volkswagen, the region's biggest carmaker, and the Captur compact crossover at Renault.
"I hope and think" Europe's car market has hit bottom as "it's slowly stabilizing," Alfredo Altavilla, chief operating officer of Fiat's European operations, told reporters on Monday in Milan. "Talking about recovery is another story."
The regional auto market is still on track for a sixth straight annual decline, as 11-month registrations fell 2.8 percent to 11.4 million cars.
Even with the three-month gain, the longest stretch of growth since the period from June 2009 to March 2010, sales remain close to the lowest since the ACEA began compiling figures in 1990, said Quynh-Nhu Huynh, the trade group's economics and statistics director.
Except for November, when figures were the third-worst for the month, "registrations recorded for every month this year were at the lowest level or second-lowest ever recorded to date," she said in an e-mail.
Among Europe's five biggest car markets, demand increased 15 percent last month in Spain, which ranks fifth in the region, and 7 percent in the U.K., which places second.
The Spanish government revived a cash-for-clunkers incentive program in October to boost car sales. Registrations dropped in Germany, France and Italy.
"We do not expect a sharp European demand recovery," Harald Hendrikse, an analyst at Nomura in London, wrote in a report to clients Dec. 12. "Our analysis of individual European markets suggests that the good economies have little upside to car sales, whereas those with upside do not have good economies."
The only large European carmakers to post group sales increases in the region last month were Volkswagen and Renault.