European car sales drop in April, but Fiat gains

FRANKFURT, May 16 (Reuters) The long Easter holiday helped knock European new car registrations down 7.3 percent in April to nearly 1.27 million vehicles, but Fiat bucked the trend with more strong gains, industry data showed on Tuesday.

Japanese carmakers Suzuki Motor Corp and Honda Motor Co Ltd also posted solid advances in an otherwise forgettable month for the industry.

Calendar quirks for Easter -- which fell in March last year and April this year -- depressed the data for registrations, which closely mirror sales.

Many markets had two fewer sales days versus a year earlier and Germany -- the continent's biggest car market -- had three, Brussels-based European car industry group ACEA noted.

Italy's Fiat boosted its numbers thanks to new models like the Grand Punto and good consumer sentiment in its domestic market. New registrations for the group rose 12 percent year-on-year amid a 16.9 percent increase at its core Fiat brand.

The group's market share rose more than a full percentage point to 7.7 percent in April as its Alfa Romeo brand grew but Lancia lagged.

Its shares, the leading performer among European carmakers this year, had slipped 1.3 percent to 10.70 euros by 0738 GMT. The DJ Stoxx European car sector index gave up early gains to trade flat after sharp falls on Friday and Monday.

The index has retreated from a nearly seven-year high of 280.99 it hit in April on expectations that European carmakers would get a serious grip on costs and boost profit margins.

MIXED BAG Even when volume grows, carmakers face intense pressure on margins from high commodity prices, chronic overcapacity and a European price war that shows scant signs of easing.

Volkswagen registrations fell 3.1 percent but still outpaced the overall market thanks to a 4.4 percent rise at the flagship VW brand while Audi, Seat and Skoda slipped.

Renault continued to slump, down 12.9 percent. Surging sales of its low-cost Logan could not offset a nearly 15 percent decline in Renault brand sales as the French carmaker gets out of unprofitable business at the expense of volume.

Registrations of DaimlerChrysler's premium brand Mercedes-Benz fell 8.8 percent and Chrysler sales rose by 8.7 percent, but registrations of the Smart brand of small cars fell by more than a quarter after it pruned its model lineup.

Asian carmakers, whose reputation for quality at affordable prices has won converts in Europe, had a mixed month.

Suzuki's figures advanced 8.9 percent, continuing its strong showing this year and boosting its market share in April to 1.6 percent -- the same as in March -- from 1.4 percent a year earlier.

Mazda Motor Corp also showed a gain of 2.4 percent.

South Korea's Kia Motors added 0.8 percent, again well short of its performance in 2005 when it was the fastest-growing brand in Europe.

Toyota brand sales eased 1.0 percent while its Lexus premium brand shot up 63.4 percent to 3,205 cars.

Nissan Motor Co Ltd's performance continued to suffer. Its new registrations fell almost a fifth.

U.S. giants Ford Motor Co and General Motors both lost market share in Europe. Ford group registrations retreated 10.9 percent, with only its Land Rover brand in positive territory.

GM group registrations fell 10.8 percent, with only Swedish brand Saab chalking up a minor gain.

The ACEA data reflect registrations in all European Union countries except Malta and Cyprus, plus Norway, Switzerland and Iceland. Excluding the newest EU members, registrations fell 7.6 percent last month to 1.20 million vehicles.

REUTERS PV GC1437