Car Sales in Germany Drop 17%

Registrations of new cars in Germany fell to 281,200 units last month from 339,200 units in March 2012, federal auto bureau KBA reports.

March marked the biggest percentage decline in the country's auto sales since October 2010. Industry group VDA blames Germany's worsening job market and worries that debt woes in Cyprus would hurt the EU's economy.

Peugeot's 41% plunge in deliveries in Germany last month was the biggest for any marque, followed by Citroen's 36% drop, according to KBA. Sales tumbled 21% for the Volkswagen brand and 10% for Audi.

In the first quarter of 2013, the country's new-vehicle volume fell 13% to 674,000 units, KBA says. Volkswagen posted the biggest deficit in the period, a 17% slide, followed by 16% for General Motors and 7% for Fiat.

The VDA predicts the German car market will stabilize in the April-June period, insisting that the country's outlook remains robust.