Germany's Association Of International Motor Vehicle Manufacturers, or VDIK, on Thursday confirmed it expects new car registrations to slump in 2010 after 2009's figures were boosted by a car scrapping incentive scheme.

The industry association predicts 3.8m new cars will be sold in 2009 in Germany. For 2010, it expects a tally of about 2.8m and, if the economic situation stabilises, up to 2.9m.

"I've always pointed out that 2009 won't be a normal year and expect that up to 1m will be missing in 2010. There will be a decrease in private car sales and an increase in fleet car sales," VDIK president Volker Lange told Dow Jones Newswires.

New registrations of cars with CO2 emission of below 140g/km experienced a surge in demand and will almost double to 1.41m in 2009. Cars with even less that 120 g/km more than doubled to 450,000 units, the association predicted.

At the beginning of December, VDIK said German new car registrations in the first 11 months of the year rose 25% to around 3.59m cars, fueled by the German scrapping incentive scheme. In November alone, this figure was up 20% on the year to 280,000, following strong gains in previous months.