UK car sales experienced a 12-month low in 2008.

The UK motor industry has experienced a 12-month low in the number of cars sold, according to the Society of Motor Manufacturers & Traders (SMMT).

New car registrations fell by more than 20% in December 2008, while the full year’s total is down by 11.3% – the lowest since 1996.

Diesel cars make up almost 44% of the UK car market – three times the share recorded in 2000 – while small cars were more in demand than larger vehicles, with the Ford Fiesta, Vauxhall Corsa and Ford Focus being the top three best-selling vehicles of the year.

Paul Everitt, SMMT’s Chief Executive, explained the fall in sales: “The global economic downturn, precipitated by the crisis in the international banking and finance sector, created unprecedented challenges for the UK automotive industry in 2008.

“The measures taken by government to support the banking sector and kick-start demand have been necessary, but are not yet sufficient to restore confidence. Further action to ease access to finance and credit across the economy is essential if long-term damage to valuable industrial capability is to be avoided.”

The average CO2 emissions of new cars fell by a record 4.2% – a total of almost 17% less CO2 production since 1997 when car manufacturers began to use new technological innovation to reduce vehicle emissions.

The SMMT anticipates that 2009 will also be another difficult year for the industry.