German car sales have shot up 40% in a further sign that the world auto industry may be recovering from a collapse that has forced job cuts and plant closures.
Germany's VDA automobile federation said sales rose to 401,000 in March compared to the same month last year in the biggest boost since 1992.
Analysts said the rise showed a 'shopping frenzy' was underway in Germany that would lighten a crippling recession in Europe's largest economy.
The rise follows similar gains for battered automakers in France, Italy, Spain and the US, which have suffered badly from plunging demand amid tighter credit, rising unemployment and economic uncertainty.
Figures released in the US yesterday showed March auto sales had plummeted from a year ago but picked up compared with February - seen as a modest cause for optimism in the deeply troubled US auto industry.
US automakers sold 857,735 vehicles in March, a hefty 37% decline from a year ago but up 24.5% from February levels - a sign that the slump could be bottoming out.
