As drifting demand in Romania and Poland spurred the rise in Germany, Fiat SpA and Bayerische Motoren Werke AG led the first increase in European car sales in five months.

The Brussels-based European Automobile Manufacturers Association said July 13 that in June, new car registrations rose 0.7 percent to 1.54 million vehicles from 1.53 million a year earlier. With 8.51 million vehicles, first-half sales dropped 0.2 percent.

Based in Turin, Italy, Fiat increased sales 9.9 percent to 119,130 vehicles. On the other hand, BMW, the world's largest maker of luxury cars, built up purchases 6.9 percent to 83,594. As economic expansion stimulates consumer spending, sales in Eastern Europe increased. In Germany, a sales tax increase hurdle potential buyers.

Horst Schneider, an analyst at WestLB in Dusseldorf, said that the European market has a very mixed picture. He added that Germany is still suffering from the drag effect on demand that happened last year before the tax was hiked. He also said that there will be no change in demand until next year.

In Milan, shares of Fiat fell 22 cents, or 0.9 percent, to 23.49 euros. The stock has more than doubled as compared to the figures last year. BMW 2800 parts maker and Munich-based BMW rose 23 cents or 0.5 percent, to 48.89 euros. It has gained 27 percent for the previous year.

In June, Fiat's market share raised to 7.7 percent from 7.1 percent a year earlier on deliveries of the new Bravo compact, which was available in February, as well as the Grande Punto and Panda models. This year Fiat sales have gained 7.2 percent and the company has hiked European sales for 18 consecutive months.

BMW Chief Executive Officer Norbert Reithofer said in February that he expects pretax profit to increase in 2007, spurred by new versions of the Mini small car, which started its availability in November, the 1-Series car and sport-utility vehicles. BMW's market share increased to 5.4 percent last month from 5.1 percent.

Eastern European sales jumped 21 percent higher last month, while western European registrations declined 0.6 percent. Sales in Romania flowed 56 percent to 32,679 vehicles, while Poland earned a gain of 23 percent to 25,809 units. German sales decreased 7 percent to 301,108 vehicles.

The government in Poland, Eastern Europe's largest economy, forecasts growth this year of 6.5 percent. Due to an increase in sales tax to 19 percent from 16 percent at the start of the year, the German carmakers association forecast in July 3 that 2007 sales will jump 7.8 percent down to 3.2 million vehicles.