A global auto industry group forecast Wednesday world vehicle production will rise by 3.0 percent this year, in line with 2011, although carmakers warned that European demand would likely remain weak.

Last year, global vehicle production reached a record 80.1 million units, the International Organization of Motor Vehicle Manufacturers said at the Geneva Motor Show.

"After a dramatic fall in 2009 to 61.8 million units due to the crisis in 2008, world car production car has regained its growth rate," said the president of the trade body, Patrick Blain.

Production in Europe was expected to fall in 2012, but Chinese output would rise by 8.0 percent, production in India by 14 percent and output in Japan would also rise.

Last year, vehicle production in Europe grew to a total of 17.7 million units, but this was still less than the volume in 2008 when the financial crisis hit, Blain said.

Production in China, the biggest car maker, slowed to 18.4 million units, after a spurt in 2009 and 2010. North American production totalled 13.5 million vehicles.

Japanese production also fell, owing mainly to the effects of a massive earthquake and tsunami.

Forecasting that overall global car producers would raise output by 3.0 percent in 2012, the organisation said it expected a slowdown "in some countries" but that factories would be opened in countries such as Russia, Morocco and Brazil.

These overall figures were slightly lower than those estimated by the German auto industry, which expects the global car market to grow by 4.0 percent this year.

The auto market in Europe has begun the year on a weak note, largely because of uncertainty arising from the debt crisis.

In February, new car registrations declined in most European countries except for Germany where they were stable.

They fell by 2.5 percent in Britain, 2.1 percent in Spain and plunged 18.94 percent in Italy and 20.2 percent in France.

Ford Europe chief executive Stephen O'Dell told AFP that it is difficult to see when the European car market will recover.

"It feels like it's bottoming out rather than steadying out. But still a lot depends on a real conclusion to things like the Greek debt which is really the sovereign debt issue in Europe.

"Spain has pretty high debt. Italy is higher than Spain as a percentage of GDP," he said.

"It's so volatile at the moment, it is too difficult to forecast."

Daimler chairman Dieter Zetsche said he believed the "risk for a disruptive crisis has declined with progress made in recent weeks and months," with several European states like Italy taking strict austerity measures to bring debt levels down.

However, drivers to boost consumption were still missing.

"We definitely need growth policies as well," said Zetsche. "The next focus for politicians is how to create growth."

"There is lots of work to be done, more action is needed," he added.