The industry will suffer an unprecedented stalling of demand as government restrictions to prevent the spread of the coronavirus cause economic hardship.

The decline means sales in Europe are off to their worst start since 2013 and are poised to deteriorate further after automakers shuttered plants to counter the coronavirus pandemic.

Italy's car market risks losing about 300,000 registrations this year unless the government offers incentives to support purchases, industry lobby group UNRAE said.

Ford's sales fell most among major brands, down 19 percent, followed by Renault with volume down 16 percent and PSA, whose registrations dropped 14 percent.