The European new car market contracted sharply atthe start of the year with auto registrations falling 7.1 per cent inJanuary compared with the same month last year, the EuropeanAutomobile Association said Friday, dpa reported. This fall resulted in the total number of new registrations in theEuropean Union dropping to 968,769, the Brussels-based ACEA said. Registrations fell 6.4 per cent year on year in December. The slump in sales came against the backdrop of economicuncertainty unleashed by Europe's debt crisis and the moves bygovernments across the region step up austerity campaigns to knocktheir state finances into shape. This has left large parts of theregion in recession. The biggest fall was in Portugal, where registrations tumbled 47.4 per cent in January. Portugal has been hit by a marked economicdownturn as it battles to come to grips with the debt crisis. Also leading the overall decline last month was a sharp 20.7-per-cent slump in France and a 16.9 per-cent drop in Italy. France and Italy are the 17-member eurozone's second and thirdlargest economies respectively. However, Germany, which is Europe's biggest car market, reportedonly a modest fall of 0.4 per cent in the period under review. Spainposted a 2.5 per-cent gain. The largest increase was in Romania, where registrations shot up 86.4 per cent.
