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Europe auto and parts sector gains from China steps to boost car sales

July 21, 2023By Reuters

Europe’s automobile and parts sector rose on Friday after China unveiled steps to boost car sales, as it tries to shore up a sluggish economy, while Volvo Cars results also supported the sector.

The STOXX 600 car and parts index rose 0.36%, and was set for a modest weekly gain of 0.2%.

Chinese authorities announced measures aimed at boosting sales of automobiles and electronics, but those steps fell short of impressing investors, who have been clamouring for stronger stimulus.

Sweden-based automaker Volvo Cars, majority-owned by China’s Geely Holding, gained the most after the car-maker forecast healthy demand for its vehicles despite pricing pressures. Its shares rose 6.8%.

France’s Renault RENA.PA rose 1.6%.

(Reporting by Joice Alves; Editing by Amanda Cooper)

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