So with car sales booming for manufacturers such as SEAT, what could go wrong? For a start, Europe's recovery – or more specifically, the euro zone's, is not so established that industry experts forecast a smooth ride ahead.
Euro zone countries are seeing growth and employment rates slowly improve but the wider economy is still operating in a low-inflation environment with consumers still cautious about making big-ticket purchases.
SEAT told CNBC that while the automotive sector was "clearly recovering" in Europe, there was no room for complacency, saying it carefully monitors the "economic situation in Europe" although it trusted that the recovery would "remain stable."
"SEAT needs to concentrate its efforts on those markets where it is already present and provide a large contribution margin, and where it still has major growth potential. This means concentration in Europe."
Analysts agree that Europe is not out of the woods yet and while the car industry is one of the more robust sectors, it faces pressures from other areas: Regulation, uncertainty over investment and profitability, global competition and uncertainty over the region's outlook.
For example, European manufacturers have had to comply with EU regulations aimed at reducing greenhouse gases and the latest regulation requires that new cars registered in the EU do not emit more than an average of 130 grams of CO2 per kilometer by 2015. Showing EU car manufacturers could be ahead of the game, the average emissions level of a new car sold in 2014 was 123.4 g CO2/km.
The ACEA states that Europe's cars are now the "cleanest" in the world with the average car engine emitting 28 times less carbon monoxide than 20 years ago. It adds that the average new car today has become more fuel efficient, consuming 15 percent less fuel per 100km than 10 years ago.
While emissions regulation has helped to boost the EU's green credentials, it has become a source of contention for some of Europe's car manufacturers, or rather, their investors, according to one automotive equity research analyst.