Car sales in the EU, THE UK and the European Free Trade Association fell to 884,394 in August. All countries in the region except Cyprus saw sales decline compared with last year. BMW and Kia were the only European carmakers to report sales growth in August, but overall European registrations fell 18 per cent.

       Although government subsidies have helped revive car sales in recent months, France's scrappage scheme, which gives new car buyers a €5, 000 ($5, 900) subsidy, expired at the end of July. A surge in irus infection rates from Novel Coronavirus in France and Spain now poses new threats.

      Car sales in the European Union, the UK and the European Free Trade Association (EFTA) fell to 884,394 in August, data from the European Automobile Industry association showed on Thursday. All countries in the region except Cyprus saw sales decline compared with last year.

New car registrations from January to August in Europe

        In Europe as a whole, registrations are down 18 per cent, according to the data; New car registrations fell sharply in Germany and France, and slightly less in Italy. In terms of brands, BMW and Kia were the only European carmakers to report sales growth in August, with Kia's sales up 19% and BMW's brand registrations up 7.8%. The rest of the brands all fell.

       Specifically, Sales at Volkswagen group, Europe's biggest carmaker, fell by 24%; Seat fell by 33%, Audi by 28%, Volkswagen by 25%, Porsche by 16% and Skoda by 14%.

       No. 2 PSA Group saw sales drop 19 percent. Among PSA brands, Opel had the worst performance, with a 37 per cent drop in registrations. DS sales fell 17 percent, Citroen 14 percent and Peugeot 6.4 percent.

      Renault's group sales fell 23 per cent, with sales of the Dacia and Renault brands falling 34 per cent and 12 per cent respectively. The FCA group fell 6.9%, with Alfa Romeo down 17%, Jeep down 12% and Fiat off 3.3%. In addition, Ford registered a 13 per cent drop in registrations and Mercedes sales fell 4.3 per cent.

       Among Asian brands, Nissan motor co. 's sales fell 17 percent, Hyundai Motor Co.' s sales fell 8 percent and Toyota Motor Co. 's sales fell 4.3 percent.

       An unexpected drop in auto sales in August is a stumbling block to automakers' recovery and could signal that Europe's auto industry needs to prepare for a worse-than-expected year. Sales in Europe fell 3.7 per cent in July, followed by a 24 per cent drop in June and a 57 per cent drop in May.

      'The drop in August was quite surprising given that the market is expected to release some pent-up demand following months of downtime,' analyst Michael Dean said in a report Wednesday.

     "Car sales will fall by at least 20 per cent in 2020, possibly even more if the August recession suggests that the rebound in Demand in July was just a temporary recovery supported by subsidies," Mr Dean said.

      Although government subsidies have helped revive car sales in recent months, France's scrappage scheme, which gives new car buyers a €5, 000 ($5, 900) subsidy, expired at the end of July. A surge in irus infection rates from Novel Coronavirus in France and Spain now poses new threats.

     Notably, new car registrations in Europe have fallen by almost a third this year to 7.3m. While car sales in the U.S. are doing well, China is starting to grow again.