According to new figures released by the motor industry association, VDA, German car sales remained relatively static at 3.24 million vehicles during 2003.

Although the three-year trend of slowing car sales has been halted, the VDA warned there are no incipient signs of a prolonged upturn.

The group commented in a statement: 'After three years of declining new car registrations in Germany, the year 2003 brought consolidation in the domestic market, albeit at an unsatisfactory level.'

Manufacturers were reliant on overseas sales as demand in the German market remained low due to uncertain economic conditions.

VDA president, Bernd Gottschalk, has predicted new registrations to increase by three per cent to 3.35 million over the next twelve months, news agency Reuters reported.

Indeed, there was some encouraging news at the close of 2003, as registrations in December rose by about one per cent to 231,000 vehicles, hinting at signs of an upward trend.

The German car industry, which is the largest market in Europe, accounts for roughly ten per cent of German industrial output and employs one in five people.