Berlin  - A sharp drop in new car registrations in Italy helped to drag down total European auto sales, data released Tuesday showed, with weak consumer demand also hitting the country's key carmaker, Fiat.

The European Automobile Manufacturers' Association (ACEA) said Italy recorded a 18.8-per-cent plunge in car registrations with the nation reporting a 10-per-cent fall for the quarter.

Total new European passenger car registrations slumped by 9.5 per cent in March, the data showed with last month's fall resulting in car registrations dropping by 1.7 per cent during the first three months of the year compared with the same period in 2007.

"Weak consumer confidence, which stood at its lowest in four years, the pre-elections climate and the overall economic setting contributed to the fall in Italy," the ACEA said.

The data also showed registrations for the Fiat group's stable of brands including its flagship Fiat brand as well as Lancia and Alfa Romeo fell by 12.1 per cent in March.

This resulted in a 4.2-per-cent fall for the Turin-based carmaker during the first three months of the year. (dpa)