The German car market may start to stabilise in the second quarter, according to the VDA car makers’association.

Sales fell in the first three months along with other key European markets. Last month, volume fell 17% to 281,200, according to the VDA. Sales in France were down 16.4%, Spain 13.9% and Italy, 4.9%.

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First quarter sales in Germany fell 13% to 674,000 and VDA president Matthias Wissmann said: “I trust that the market will stabilise in the second quarter as Germany’s economic outlook is still looking robust.”

The euro zone crisis has highlighted the problem of overcapacity in the region. Volkswagen, Europe’s biggest carmaker, which resisted most of last year’s slump, suffered a 17% drop in German sales between January and March, worse than falls of 15.5% at Opel and 6.8% at Fiat.

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