New car sales in Germany, Europe's largest economy, saw a one per cent improvement to 258,000 in November from a year ago.

Overseas demand also revealed a healthy performance, with a two per cent rise to 363,700 in exports. Production also rose by two per cent, according to the VDA car industry group.

'New models from German car companies are having a positive effect,' said the group in a statement.

The VDA was quick to insist, though, that the figures cannot be taken as an indication that there will be a wide-ranging recovery early next year.

The rising fortunes of the euro are cutting earnings made from exports to America, so manufacturers are concentrating on the local market.

The German industry's performance is unlikely to sink to the level of under-achievement seen in France, where sales have fallen by 6.9 per cent.