The benchmark DAX index at Frankfurt Stock Exchange went down by nearly 250 points and closed at 9,167.8 points.
The blue-chip index plunged by 248.97 points, or 2.64 percent on Wednesday, Xinhua news agency reported.
Fresenius, a medical care company, was the only one among the 30 DAX member shares which has managed to rise. It added 3.43 percent.
On the other hand, Volkswagen slumped by 4.65 percent.
Infineon Technologies, a semiconductor producer, slipped by 4.59 percent. Continental fell by 4.57 percent. Daimler slid by 4.09 percent. BMW went down by 4.02 percent.
Daimler was the most traded share of the day with a turnover of 361.61 million euros (around $398 million).
