Growth of the German new car market slowed to just 2.7% year-on-year in April according to industry data.

Hopes have been high that the strong German economy will underpin growth of the German car market this year. While consumer and business confidence has been very positive and unemployment is at its lowest level since 1992, April's sluggish car market may concern industry analysts.

Sales of new cars in Germany rose by 2.7% year-on-year in April, a significant slowdown from March's growth of 11.4%.

A total of 266,380 cars were delivered in the biggest European auto market, VDA data showed, while figures since the beginning of the year showed a gain of 11% to nearly 1.03m vehicles.

The German market 'is in a normalisation process,' VDA president Matthias Wissmann said.