"Demand for new cars reached the lowest level recorded since 1995, totaling 12,053,904 units" in 2012, marking a year-on-year contraction of 8.2 percent, the body said in a statement.

The 8.2 percent year-on-year contraction was the worst since the 16.9 percent downturn experienced in 1993, ACEA said.

The trend was aggravated by exceptionally bad figures for December in the debt crisis-stricken bloc, where leading automakers have announced job cuts and factory closures in recent weeks.

"In December, new car registrations declined by sharp 16.3 percent in the EU, continuing a downward trend commenced fifteen months ago. The decline is the steepest recorded in a month of December since 2008," the statement said.