The firm’s data shows that the UK was the only “Big Five” market to experience growth in January, with sales increasing 11.5%, while Germany, France, Italy and Spain all experienced continued falls in vehicle registrations.

The Netherlands saw a significant fall in new car sales, down 30.4% on a year earlier. This is primarily the result of an overall decline in consumer confidence due to the impact of rising taxes, declining pensions and a stagnant housing market. In addition, January 2013 saw the tightening of emission boundaries that drive company car taxation.

Commenting on the findings, Gareth Hession, vice president, research at JATO, said: ‘The new year has not seen any renewed demand for new cars in much of Europe. The market remains challenging and highly competitive.’

Amongst the car brands, Opel/Vauxhall’s performance was notable, with a 2.2% increase in January sales compared with 2012. The new Mokka model has been particularly well received by the market, recording almost 5,500 units sold in January, while the high-volume Corsa and Astra models also increased sales.

BMW and Mercedes-Benz were the only other brands in the Top 10 to record increased sales, with sales up 5.5% and 1.9% respectively.

Outside the Top 10, Mazda and Dacia are the rising stars of the market in January. Mazda’s sales were up 25.0% thanks to the CX-5 crossover SUV, and Dacia saw sales rise by 6.0% thanks to the introduction of the second-generation Sandero hatchback and the new Lodgy MPV.

Looking at the model performances, the Volkswagen Golf continues to be Europe’s best-selling car, despite sales falling 17.8% compared to January 2012.

B-segment cars take the next four places in the models chart. The Ford Fiesta comes in second, but the third-placed Volkswagen Polo and fourth-placed Renault Clio are within a few hundred units of the Fiesta’s sales volume. The introduction of the fourth-generation Clio has improved the model’s market performance, with sales 11.3% higher than in January 2012. Peugeot’s 208 completes the Top Five.

Mr Hession added: ‘The B-segment is one of the most competitive in the European market. Recent product actions such as facelift Fiesta and the introduction of the Clio 4 and the 208 have added to the strength of this segment.

‘With the Fiesta, Polo, Clio and 208 all selling such similar volumes, we anticipate the lead of this segment will change regularly during 2013.’