Europe's new car sales continued to fall in February as new data showed a 10.5 per cent drop in registrations.

New car registrations declined to 0.82m last month from 0.92m a year earlier, according to the European Automobile Manufacturers' Association (ACEA).

Between January and February, demand for new cars in Europe dropped by 9.5% to 1.68m units.

February's decrease in demand was led by a 10.5% year-on-year decline in Germany and a 9.8% fall in Spain. France and Italy recorded a downturn of 12.1% and 17.4% respectively.

The UK was the only country to post growth, with registrations up 7.9%.

The figures come after Volkswagen, Europe's biggest carmaker, saw sales tumble 7.2% in the region last month.

Munich-based BMW, the world's largest luxury-car producer, also saw European sales plunge 2.8% in February.

Daimler reported a 1.7% fall in European sales last month, compared with a 3.7% increase in January.

Paris-based Peugeot posted a 13% drop in Europe sales while rival Renault reported an 8.6% decline.

IHS Automotive research company predicts demand for cars in Europe will plummet for a sixth consecutive year in 2013.

RD

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