Europe sales fell 4% in December; 2020 worst year on record

European new-car sales declined for the third month in row in December as measures to restrict a second coronavirus wave hit sales in most of the region's largest markets.

Registrations fell 3.7 percent to 1.21 million in the European Union, Britain and the countries of the European Free Trade Association (EFTA), data from industry association ACEA showed on Tuesday.

ACEA said 2020 saw the biggest annual drop in car demand since its records began in 1990, with registrations falling by 24 percent to 11.96 million.

A strong finish to the year for Volkswagen Group and PSA Group limited the industrywide decline in December.

Volkswagen Group registrations for the month rose 8.2 percent, with all brands showing gains except Audi.  Sales at Porsche were up 17 percent; VW brand gained 16 percent; Seat was up 5.5 percent; Skoda sales increased 4.5 percent. Audi's registrations fell 5.8 percent.

PSA Group sales rose by 1.7 percent, led by Opel/Vauxhall, whose registrations jumped 19 percent. Citroen sales fell 8.2 percent and DS was down 6.6 percent percent. Peugeot's volume was flat.

Renault Group reported a drop of 16 percent, with Renault brand down 12 percent and Dacia down 22 percent.

Fiat Chrysler sales rose by 7.5 percent, with Jeep's registrations up 20 percent and Fiat brand up 2.8 percent.

Ford's registrations fell 23 percent.

Among Asian automakers, Toyota brand gained 23 percent. Hyundai's volume was flat, Kia was down 11 percent and Nissan sales fell 9.9 percent.

Luxury automakers posted losses in volume, with BMW brand's sales falling 8.4 percent and Mercedes-Benz brand reporting a 3.4 percent decline.

Jaguar was a bright spot among premium brands with sales up 22 percent. Sister brand Land Rover saw its registrations fall 12 percent.

Relatively resilient demand in the second half did only so much to make up for the collapse during the initial outbreak of COVID-19 last spring.

Sales were boosted by subsidies and increasing numbers of online sales during government-imposed lockdowns. But the collapse in sales in March, April and May was difficult to come back from, with the industry managing a single month of growth all year. By contrast, China's auto market expanded throughout the second half.

Spain's market fell most among the larger European markets in 2020, with yearly registrations down 32 percent. Sales fell 29 percent in the UK and 28 percent in Italy and 26 percent in France. The German market was down 19 percent.

Reuters and Bloomberg contributed to this report