Passenger car sales in the European Union plummeted almost 10 percent in February -- their biggest drop since 2010 -- as consumers tread warily through uncertain economic times.

Sales across the 27 member countries fell 9.7 per cent last month compared with February last year. The negative year-on-year result was the largest for the region since October 2010, when it endured a 16.0 percent drop.

The Renault Group (Renault and Dacia) was the hardest hit, with sales down 24.0 percent, or 26,721 vehicles, for the month. The French company is faring even worse year-to-date, down 24.6 percent and already more than 50,000 units off the pace of the beginning of last year.

Compatriot PSA Peugeot-Citroen didn't fare much better. The EU's second-largest automotive group saw its sales drop 16.8 percent in February, or 23,406 vehicles, and it is 15.8 percent behind 2011 year-to-date.

The Fiat Group -- whose major brands include Fiat, Lancia/Chrysler, and Alfa Romeo -- fell 16.7 percent, while the General Motors Group -- including Opel/Vauhaul, Chevrolet, and GM -- dipped 13.8 percent for the month.

Demand for new vehicles dropped in all major EU markets -- France (-20.2 percent), Italy (-18.9 percent), the UK (-2.5 percent), and Spain (-2.1 per cent) -- expect Germany, where sales were stable in February.

As a result, the German manufacturers -- the Volkswagen Group (-2.6 percent), the BMW Group (-1.4 percent), and Daimler (+4.3 percent) -- all fared better than average.

Ford, down 7.9 percent last month, described the current situation in the EU as "extremely challenging."

"Industry sales are well below 2011 levels, which itself was a slow year, so we remain very concerned about the market," said Roelant de Waard, Ford of Europe's marketing, sales, and service vice president. "There is a clearly a strong need for decisive actions to help bolster consumer confidence and improve demand."

De Waard's statement echoed the sentiments of Fiat-Chrysler CEO and European Automobile Manufacturers' Association President Sergio Marchionne, who last month said Europe was at a "critical juncture."

"Europe must counter the economic headwind with a strong industrial policy to underpin Europe's manufacturing base," Marchionne said. "The pillars of economic growth and of future prosperity must be strengthened to secure the future of Europe and its citizens."

Marchionne forecasts a challenging period ahead for Europe and its automotive industry, suggesting the "most optimistic forecast" is that new-vehicle sales remain flat through 2014.

Car Advice