BERLIN (BLoomberg) -- Fiat S.p.A., Toyota Motor Corp. and Ford Motor Co. were hit hard by a 10th straight monthly decline in European car sales as consumers cut spending following the end of government incentives.
Registrations in the region fell 1.1 percent to 1.07 million vehicles in January, ACEA, the European automakers association said.
Fiat's European sales dropped 20 percent last month, Toyota's declined 11 percent and Ford dropped 9 percent.
Volume carmakers in Europe are under pressure to cut prices as overcapacity and falling sales have led to an oversupply of autos. Buyers are holding back following the end of government incentives used to encourage purchases during the worst of the recession.
"Vehicle markets are still coming under pressure for a variety of reasons -- payback from scrapping schemes, doubts about economies, job security worries," Ian Fletcher, an IHS Automotive analyst in London, said before the figures were released. Ireland and Romania are the only European countries still offering incentives, he said.
Sales declined in three of the top five markets, dropping 24 percent in Spain, 21 percent in Italy and 12 percent in the U.K. Germany gained 17 percent and France rose 8.2 percent.
VW's German sales rebound
Volkswagen AG, Europe's biggest carmaker, benefitted from the rebounding sales in its home market as Europe's largest economy grows. VW recorded a 6 percent rise last month to 227,212 vehicles. VW's market share increased to 22.1 percent from 20.6 percent.
All three German luxury carmakers also bucked the overall market decline in part because they benefitted much less from the sales incentives.
BMW AG, the world's largest luxury carmaker, jumped 20 percent to 56,165 cars. Daimler AG, including its Mercedes-Benz and Smart brands, recorded a 14 percent rise to 46,769 registrations. VW's Audi rose 3.6 percent to 47,916.