European new-car sales rose 6 percent in October from year-ago levels as volume- and premium-brand leaders including Volkswagen and BMW recorded strong gains in key markets.
Passenger-car registrations in the EU and EFTA increased to 1.11 million vehicles last month, helped by price cuts and the launch of new models.
Demand picked up in all major countries except France and rose in seven of the region's top-10 markets, industry association ACEA said today in a statement.
Europe's auto market has grown for 14 straight months after a six-year slump but remains well short of its peak before the financial crisis.
"The current momentum is better than one could have expected at the start of the year," Philippe Houchois, a London-based analyst at UBS said. "That being said, the pricing environment remains tough, and there's no improvement there."
Analysts warned that signs of an economic slowdown across the region could snuff out a fragile car market revival in the coming months.
"The recovery in the European auto market is mainly fueled by catch-up effects in the [southern] crisis countries," said Peter Fuss, a partner and automotive specialist in Ernst & Young's German practice. "It remains weak and susceptible to a renewed economic setback that today seems likely again."
George Galliers, a London-based analyst at research group Evercore ISI, said a gloomy economic outlook was likely to hold back demand in the months ahead. "To see a step up [in demand for vehicles], it would require improved economic activity, lower unemployment and higher business confidence levels," Galliers said.