The hangover effect of ending scrappage schemes is becoming evident in European car markets, report analysts at JATO Dynamics.

Germany, traditionally Europe’s largest new car market, saw its February sales down 29.8% versus the same period in 2009, when its scrappage scheme was operating.

It was outsold by Italy, which is still operating a scheme discounting new cars replacing old ones.

David Di Girolamo, head of JATO Consult, said it paints a true picture of consumer confidence in the German market, after a series of smaller monthly declines.

He added: “If this situation were to affect all markets at the end of their scrappage schemes we could lose a third of all European new car registrations by mid-2010.”

The UK scrappage scheme expires at the end of this month, while schemes in Spain, Italy and France will also end this year.