Fiat SpA's (F.MI) automotive unit's share of the Italian automobile market rose to 35.17% in April from 32.62% in March, according to figures released Monday by Italy's Infrastructure Ministry.

Overall, Italian new car registrations in April fell 7.5% to 188,406 units from 203,750 units sold in April 2008.

Monday, Fiat shares ended 8.1% higher as investors welcomed the company's plans to spin off its car business and merge it with General Motors Corp.'s (GM) European operations.

After taking a stake in U.S. auto maker Chrysler LLC last week, Fiat Chief Executive Sergio Marchionne is seeking to separate the company's auto division and link it with Chrysler and GM's European units to create a European car giant.

Auto makers are facing a dramatic downturn in demand for new cars in many markets around the globe, which has triggered a slew of profit warnings and drastic production cutbacks in recent weeks.

Ministry Web site: www.infrastrutture.gov.it

Company Web site: www.fiatgroup.com

-By Giada Zampano, Dow Jones Newswires, +39 06 69766920; giada.zampano@dowjones.com