The European carmakers association ACEA says new car registrations across Europe dropped 1.7% last year.
In total 11.8 million new cars were registered in the region, 200,000 fewer than in 2012 and the sixth consecutive year of decline.
The market is at its lowest since 1995.
Compared with the UK's 10.8% growth, Spain's 3.3% increase was more modest while Germany and France recorded declines of 4.2% and 5.7% respectively.
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