THE appetite for new cars among European buyers shows no signs of slowing - giving hard-pressed manufacturers a respite from slowing sales in the rest of the world.

According to research released by the JD Power-LMC group, sales last month totalled 1.15 million units, nine per cent more than the same month last year. The total makes it one of the strongest Novembers on record.

Although the UK market has remained strong, JD Power analysts said the total was boosted by strong showings in Germany and France, where sales had been weak.

But it also sounded a note of caution. The report said that the apparent upturn had more to do with manufacturer incentives and new product availability rather than underlying consumer sentiment.

And the outlook for the car market in Western Europe next year remains weak, JD Power-LMC said.

High oil prices, slowing property price increases and soaring exchange rates have forced car makers to revise their sales targets downwards for next year.

In the first 11 months of the year, West European car sales stood at just under 13.6 million units, 1.8 per cent ahead of the same period last year.

Europe is performing far better than the world's biggest market, North America, where car companies will spend an alarming $60bn on incentives this year.

According to a recent study, an incentive - usually in the form of a cash-back rebate - is now available on nine out of ten cars sold by US dealerships.

The average incentive package costs car makers $4,000 a customer - in a land where prices are already 30 per cent lower on average than the UK.

Even more worrying for car manufacturers is the fact that incentives are now no longer thought of as a sweetener - they are taken for granted.

US sales are up only 0.8 per cent this year. Even the big players, such as General Motors and Ford are struggling to make profits.

Incredibly, according to research by CNW Marketing, the number of cars and trucks sold with some kind of incentive has climbed from 8.5 per cent of the market ten years ago to 89.7 per cent today.

At the same time, the value of cash rebates and subsidised leases has climbed from $878 in 1994 to $3,993 a model, which will total $60bn this year, up from $50bn a year ago.

The problem stems from a slump in the market in the months after the September 11 terrorist attacks on the US in 2001.

To boost sales, General Motors offered zero per cent finance - forcing every other major player to follow suit.

The deals helped bolster the US economy, but any car maker trying to cut back has seen a dip in sales. Now, it seems, car drivers simply expect a great deal, and if a maker cannot offer one, they will shop elsewhere.