Car sales in Germany have continued to increase, according to the VDA industry association.

April showed an increase of four per cent for new car registrations, meaning that total sales grew to 298,000.

The figures marked the second month in a row that car sales have increased in Germany.

In a statement, VDA commented: "In view of the scaled-back growth prospects for the German economy, the further rise in fuel prices and the still bleak situation on the labour market, the automobile industry is proving to be a stabilising element in the difficult environment."

VDA's president, Bernd Gottschalk, told Reuters that he expected car sales to continue to rise in Europe's biggest market as a series of new models entered the market.

Both the new Ford Focus and the BMW 1 series are due to be released later in the year.