Brussels - Registration of new cars in Europe plunged by 27 per cent in January, compared to a year earlier, as the auto industry continues to suffer from tight credit and reduced consumer spending, the European Automobile Manufacturers' Association (ACEA) announced Friday in Brussels.

January 2009 sales volume was 958,500 vehicles, the lowest total in two decades, the ACEA said in a press statement.

The new EU member states were worst hit, with Romania and Hungary seeing declines of more than 50 per cent in new car registrations, while the Czech Republic posted a drop of 12.3 per cent.

Registrations in Western Europe fell by 26.5 per cent, to 891,505 vehicles, with Iceland recording the steepest fall, of 88.1 per cent, followed by Ireland, at 66.5 per cent.

All Western European markets, except France (down 7.9 per cent), posted double digit falls, with Germany faring second best, at 14.2 per cent. But Britain (down 30.9 per cent), Italy (32.6 per cent) and Spain (41.6 per cent) began 2009 with large drops.

New car registrations have now fallen for nine consecutive months in Europe, the ACEA said. (dpa)