FRENCH and Spanish registrations tumble to record lows, with new car market expected to continue decline throughout 2013.

Car sales in France and Spain in 2012 fell to their lowest levels for at least 15 years, with December registration data underscoring the challenges facing the broader European economy.

French car registrations fell 15 per cent in December, leaving the full year down 14 per cent to 1.9m vehicles – the lowest since 1997, French industry group CCFA said.

Spain’s monthly sales shrank 23 per cent, after a 20 cent fall in November. Its full-year total of 699,589 cars, down 13 per cent, was the lowest since the industry association Anfac began keeping records in 1989. Italy was to report December data on Wednesday night, with German figures due on Thursday.

Ford led December’s declines among mass-market brands, with sales down 40 per cent in France and 31 per cent in Spain.

Opel, the European unit of General Motors, reported declines of 16 per cent and 17 per cent respectively.

Volkswagen, Europe’s biggest carmaker, saw sales of its core brand slump 25 per cent in France and 15 per cent in Spain.

PSA Peugeot Citroën fell broadly in line with both markets, while Fiat brand sales dropped 11 per cent in France and 28 per cent in Spain. Renault-brand registrations dropped 20 per cent in Spain and 32 per cent in France.

The number of people out of work in France has risen for 19 consecutive months to approach a 15-year high.

The chance of a recovery in the eurozone economy has faded further into 2013 after the recession deepened in the final months of last year, a poll found last month.

“The new car market continues to decline – a trait which we anticipate will continue through the course of 2013,” said Credit Suisse analyst David Arnold.

He does not expect European car sales to see growth throughout 2013.

Falling business investment and persistently weak consumer sentiment are challenging the French president’s efforts to stem rising unemployment and keep government spending within its 2013 deficit target.

Spain’s year-old recession was expected to continue well into 2013, hit by battered economic sentiment and 25 per cent unemployment – a record high. Manufacturing activity shrank for a 20th successive month in December.