Sales of new cars across Europe fell by 9% in March 2009 compared with a year ago, according to the European Automobile Manufacturers' Association.

It is the 11th month in a row that the sector has seen sales fall, but the figures were slightly better than expected, the association said.

It said government handouts encouraging motorists to trade in old cars for new ones had helped, especially in Germany.

Sales in Germany, Europe's largest car market, were up 39.9% in March.

But the increase there was not enough to compensate for big drops in new registrations in the UK and Spain. In the UK sales were down by 30.5% while in Spain sales sank 38.7%.

The increase in German sales has been triggered by a scheme that gives buyers cash if they scrap an old car to buy a new one.

Similar schemes are also running in France and Italy, where sales of new cars were also up in March.

Neither the UK nor Spain offer the incentive, although it has been predicted that the UK will announce a similar plan next week.

SOURCE : http://news.bbc.co.uk/1/hi/business/8001695.stm

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