The European passenger car market recorded almost 14% more registrations in November than in the same month of 2014, the European Automobile Manufacturers Association reported Tuesday, which should help boost demand for platinum and palladium as components in auto catalysts.
The rise in November marks the 27th consecutive month of growth with 1.09 million cars registered, and new passenger car registrations 8.7% higher in the 11 months from January to November compared with 2014, EAMA said.
All major passenger car markets reported higher registrations, including a 25% growth in Spain, 24% growth in Italy, an 11% growth in France and 8.9% in Germany.
The UK market also recovered in November after showing a decline in October, up 3.8% on the year.
Commerzbank said the EAMA data "suggests robust demand for platinum and palladium, especially since more new cars should be registered in the EU next year too," adding the extra demand should lend support to both prices in 2016.
The China Association of Automobile Manufacturers reported recently 24% higher car sales year-on-year in November at 2.2 million cars sold, following a 50% cut in purchase sales tax on cars since October.
Platinum is set for annual deficit of 20.3 mt in 2015 and palladium a 13.3 mt deficit, Johnson Matthey said in its semi-annual review on platinum group metals in November.
Both precious metals are down close to 30% this year, having struggled with poor investment demand and oversupply.
The London Bullion Market Association Platinum Price settled at $854/oz Monday afternoon, up $18/oz on Friday.
