French and Spanish new-car sales rose in June, helped by extra incentives and new models as Europe’s vehicle sector recovery picks up steadily.

French registrations were up 3 percent last month, bringing first half gains to 3 percent, the Paris-based CCFA carmakers’ association said.

In Spain, sales surged 24 percent for a tenth consecutive month of year-on-year gains.

The CCFA raised its full-year growth forecast for the French market to 2 percent from earlier expectations that the market would be flat this year.

“Taking account of the current economic realities we nonetheless maintain a certain prudence about the passenger car market in 2014,” association head Patrick Blain told reporters on Tuesday.

Renault posted a 25-percent gain in domestic sales last month on the strength of demand for its Captur subcompact crossover and the Dacia Duster.

Rival PSA/Peugeot-Citroen’s deliveries fell 2 percent, weighed down by a 9 percent decline at Citroen. Ford, General Motors, Toyota and Volkswagen also lost ground. But French demand for luxury cars picked up, with BMW and Daimler recording gains of 25 and 17 percent respectively in June after declines in previous months.

Spain market is rebounding from record lows with 18-percent first-half growth. Sales are being boosted by the renewal of state-backed sales subsidies for buyers who trade in older vehicles.

Peugeot, Citroen and Opel all fared better in Spain than in France last month, with sales growth outpacing the broader market. Among major brands, Ford, Fiat, VW and Renault led the advance with gains close to 50 percent.

Europe is recovering from a six-year auto market slump that took demand to a two-decade low and led to widespread losses for vehicle makers and job cuts, as the industry struggled to cover the huge fixed costs of its manufacturing base in the region.

Other major European markets are due to publish June registrations data later in the week.