Some 2.92 million new cars were registered to drive on the country’s roads last year, representing a 19-per-cent plunge, according to the VDA.

Over one in five new cars in Germany last year was a sport utility vehicle. Campervans also gained in popularity as anti-coronavirus restrictions limited people’s holiday options.

“We are expecting a recovery of the German passenger car market in 2021. However, the very strong pre-coronavirus level is not likely to be reached,” VDA President Hildegard Mueller said.

The last significant lull in sales was seen in 2010, one year after a major scrappage scheme provided financial incentives for car owners to get an upgrade.

Despite a slow 2020, new car registrations surged in December by 10 per cent year on year to 311,394, the VDA reported.

Reinhard Zirpel, president of Germany’s Association of International Motor Vehicle Manufacturers (VDIK), said many customers bought a car at the end of the year in order to benefit from a temporary reduction in value-added tax.

The lower tax rate was in effect until December 31 as part of government efforts to revive consumer spending during the coronavirus crisis.