European new car sales have slumped by almost eight percent. The European carmakers association ACEA blames the sharp decline on higher fuel prices.
Other sources see tight credit as the reason for the weakness in sales.
Among western European markets hardest hit,
Spain saw a fall of 24.3 percent followed by Italy at 17.6 percent. Germany, Europe’s biggest car maker and market saw sales slump by 6.2 percent.
The UK fared better but reported a downward trend of 3.5 percent.
Market leader Volkswagen dropped just over 8 percent while Japan’s Toyota suffered a whopping 21.6 percent loss in sales.