The German automotive trade association VDA has reported that January car sales in Germany were up by 17% on last year, continuing the positive trend that began in December.

The VDA said that car sales rose to 211,100 cars in January.

The VDA also said the export market for German cars grew 10% in January to 312,800 cars.

"German car manufacturers have got off to a dynamic start in 2011," VDA President Matthias Wissmann said in a statement. "Domestic demand is increasing," he added.

The German car market went into decline in 2010 after a scrappage scheme induced boom in 2009 that spilled into the early part of the year. However, a market gain in December marked the end of the reversal.

VDA forecasts a recovery in the German car market to 3.1m units this year (it was down 23% to 2.9m units in 2010) as consumer demand gradually picks up on the back of a relatively strong German economy.

See also: ANALYSIS: Germany's car market turns a corner