The sale of new cars in the European Union fell by 5,5 percent last year because the sale under the "old for new" system stopped.
Europeans bought 13,4 million cars last year, according to the European Automobile Manufacturers Association (ACEA).
The decline in sales slowed down in December by 3,2 percent, and slightly more than one million cars were sold.
"The results of 2010 were determined by the end of government support for the fleet renewal program in many EU countries," ACEA said.
China ahead of America
European carmakers, meanwhile, are scrambling to break into fast-growing markets such as China and Brazil.
In Germany, which has the largest car market in Europe, last year car sales fell by 23,4 percent, to 2,92 million.
In Germany, the sale of "old for new" was abolished as early as 2009, and only Hungary and Greece experienced a greater decline in sales.
The most cars are sold annually in China, which has already overtaken the USA.
Last year, 13,8 million vehicles were sold in China, which is a 2009 percent increase compared to 33,2, the agencies reported.
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