Reduced sales in France, Italy, Spain and the United Kingdom all contributed to a slight decline across the region – out of the big five European markets, only Germany saw an increase in sales during July.

Commenting on the findings, Gareth Hession, vice president, research at JATO, said: ‘While the new car market has been strong in Germany, low sales performances in July for the rest of the big five markets continue to impact the region as a whole. Continued economic uncertainty in the region is likely to have an impact on consumer confidence which could influence sales on the forecourt.’

Of the top ten models, six recorded increased sales in July, whereas only two models achieved this in June. According to the JATO’s, the Volkswagen Golf remains Europe’s best selling car, with sales increasing by 2.9% in July compared to a year earlier, although year-to-date sales have fallen by 6.1%. The Volkswagen Polo, with sales up by 0.7% in July, has regained second place in the market from the Ford Fiesta, however the Fiesta did retain second place year-to-date.

Volkswagen’s recently revised Passat continues to perform well, with an increase of 22.6% in July, and 27.0% for the year-to-date, while Ford’s new third generation Focus is performing strongly, with sales 18.6% higher than its predecessor recorded in July 2010.

Only three of the top ten brands recorded increased sales in July. Volkswagen, Audi and Mercedes recorded improved sales in July with all three also recording sales increases for the year-to-date, along with Opel/Vauxhall and BMW.