As Ireland sees the number of car sales surge as a result of the government scrappage scheme, in the European Union new passenger car sales fell 9.3 per cent last month on a year-on-year basis as the effects of government support for the car industry slipped away and the economic environment remained difficult according to industry association ACEA.
European governments helped carmakers hit by the crisis last year with scrapping incentive schemes that boosted demand for new cars, but most have finished or are running out and carmakers are worried about the second half of the year.
ACEA said the May decline to a total of 1,129,508 cars registered was the second monthly decline this year and reflected "the end to government support schemes on the one hand and the further challenging economic situation on the other".
In the first five months in the EU, new car registrations were down 1.9 per cent.
Germany, Europe's largest car market, whose scrapping scheme ended in September, saw a 35.1 per cent dip in registrations.
France, whose scheme is being phased out gradually, saw an 11.5 per cent year-on-year decline in May.
Spain, whose scheme is still in place, saw a 44.6 per cent increase in May, compared with a low comparison in 2009.
Data released at the start of June already showed a mixed picture in some key European car markets in May, with Spanish sales up, and French and Italian sales down, showing the impact of government support.
The head of French carmaker PSA Peugeot Citroen, Philippe Varin, said earlier this month that he expected the European car market to shrink around 9 per cent in 2010.