LUXURY and city cars are among the best performing segments in terms of European new car sales, latest analysis has shown.

A new study of sales during the month of January released this week show the two segments benefited most from a 3% rise in sales. It found that the new Mercedes-Benz S-class, with registrations up by 200% on January last year, headed a rise of 2,223 units in the luxury segment. Sales in the city car segment increased by 18,124 units to 80,437 units, aided by a sales increase of about 6,000 units each for the Citroen C1, Peugeot 107 and Toyota Aygo as well an 8.8% sales increase for segment leader, the Fiat Panda.

The study by vehicle information company Jato Dynamics says: ‘Overall, most market segments enjoyed sales increases in January, averaging 6%, but a 9.3% fall in registrations of lower medium segment cars, a decline of more than 25,000 units, was primarily responsible for holding overall market growth to 2.7%.