New car sales in Germany fell by around 6% on the year in November to 262,500 units, according to the domestic automobile association VDIK.

Cumulative car sales for the first eleven months fell fell 25% to 2.69m units, the association said.

German car sales were down by 20% year-on-year in October, emphasising that a drop of 6% is a significant improvement to the trend.

"The monthly declines in the market as a result of the scrappage scheme shrank further again in November," VDIK President Volker Lange said in a statement.

"Since their effects had largely abated in December 2009, I estimate that the first positive result in new car registration data for 2010 can be achieved this December," he added.

The German car market for 2009 reached 3.8m units on the back of scrappage incentives. This year it will turn out below 3m units. However, analysts say that the selling rate has being creeping up over the last few months, a reflection of improving consumer confidence.