FRANKFURT -- New car registrations in Germany, Europe's biggest auto market, were flat in February at 233,000 vehicles, automobile association VDA said on Tuesday.
Production rose 12 percent year-on-year and exports rose 11 percent, it said.
New registrations for the first two months of the year were down one percent.
The European market is suffering this year from weak economic conditions, subdued consumer sentiment and mounting worries about the impact of a war against Iraq, which could push oil prices up and further dampen demand.
UK-based forecaster JD-Power LMC said last week western European car sales fell four percent in February.
German carmakers have so far managed to hold their own in the world's biggest automarket, the United States, where overall demand fell seven percent in February from a year earlier.
Due to their luxury and niche status, BMW, VW, Audi and Mercedes have performed well in the United States.
However, with the euro trading at roughly four-year highs against the dollar, making exports more expensive, German companies may have to plump for lower profits this year.
In recent years, German carmakers have sold about a quarter of their cars in the United States, but over a third of their profits have come from there.