Sales last month were 851,547 units compared with 940,908 for January 2012, and with a Seasonally Adjusted Annualised Rate (SAAR) of sales of just 10.5 million units/year, LMC Automotive says the challenges for the industry in the region remain significant. The organisation adds that although there may be some impact from bad weather and strikes, the latest selling rate is the worst since 1987 and comments that ongoing weak consumer confidence is clearly taking its toll.

As a result, LMC Automotive has revised its forecast for the year, saying that it expects the market to fall to just under 11.3 million units for 2013.

Many markets disappointed. German registrations fell 8.6%, with the selling rate down to 2.8 million units/year. The French market registered the lowest level of January registrations since 1997, down 15% on January 2012, with the selling rate last month standing at just 1.6 million units/year.

The Italian market’s selling rate was dreadfully weak at just over 1.1 million units/year last month. The selling rate in Spain stood at 690,000 units/year, which LMC Automotive says is an improvement on the previous few months but remains worrying as this market is being supported by a scrappage incentive scheme.

In contrast, UK registrations managed double-digit percentage growth in January 2013, with private sales once again the key driver to this improvement.