European car sales see smallest decline in six months

European car sales fell 9 percent in March, the smallest decline in six months, as government-backed incentives lifted demand for Fiats and Volkswagens in Germany and France.

New car registrations fell to 1.51 million vehicles from 1.66 million a year earlier, an 11th consecutive monthly decline, the Brussels-based European Automobile Manufacturers' Association said in a statement yesterday. First-quarter sales tumbled 17 percent to 3.44 million vehicles.

The auto-sales decline slowed from an 18 percent drop in February and a 27 percent plunge in January after aid for purchases sparked a recovery for some markets. In Germany, where the government is offering a 2,500 euro trade-in on cars aged nine years or more, registrations soared 40 percent last month, while a less-generous scrapping incentive in France produced an 8 percent gain.