Europe’s Car Sales Fall 10%, Led by Sharp Drop in Germany

Registrations of new passenger vehicles across Europe slid to 1.35 million units last month from 1.50 million units in March 2012, according to Brussels-based carmaker group ACEA.

March deliveries in Germany tumbled 17% year on year to 281,200 vehicles. U.K. sales climbed 6% to 394,800 units, thus unseating perennial leader Germany to become Europe's largest car market for the month.

Demand contracted in France (-16% to 165,800 units), Italy (-5% to 132,000 units) and Spain (-14% to 72,700 units).

All major carmakers posted lower sales in Europe last month. Volume fell at Volkswagen Group (-9% to 319,700 vehicles), paced by a 15% skid to 156,500 units at its namesake brand. Registrations also dropped at PSA (-16% to 138,200 units), Renault (-10% to 102,000 units), General Motors (-13% to 112,900 units), Ford (-16% to 110,200 units) and Fiat (-1% to 80,700 units).

In the January-March period, registrations across Europe fell 10% to 3.10 million vehicles. The U.K. was the only bright spot, with a 7% gain to 605,200 vehicles.

Demand shrank in the region's other major markets in the first quarter, including Germany (-13% to 674,000 vehicles), France (-15% to 433,900 vehicles), Italy (-13% to 354,900 units) and Spain (-12% to 180,700 units).