New car registrations continue to rise, though year-on-year they are still down 8%.

The Society of Motor Manufacturers and Traders (SMMT) said that the number of new car registrations was up 57.6% compared to November 2008.

The November figure of 158,082 is however, on a par with the volumes reported in 2007.

According to the SMMT, 21.6% of all new car registrations were directly associated with the Scrappage Scheme. Without the Scrappage Incentive Scheme the percentage increase compared to last year would have been a slightly more modest 20%.

SMMT Chief Executive, Paul Everitt, explained the reasons behind the startling rise: “The increase in new car registrations in November reflects the positive impact of the Scrappage Incentive Scheme, customers avoiding the VAT increase in January and the very difficult conditions we experienced a year ago.”

He added: “SMMT is urging government to use its Pre-Budget Report to sustain the recovery and generate business confidence by stimulating demand in key parts of the new vehicle market.”

Once again the best seller in November was the Ford Fiesta, and year-to-date it remains the most popular new car, closely followed by the Ford Focus and Vauxhall Corsa.

SMMT say that 2010 is looking uncertain as the Scrappage Scheme comes to an end and the VAT increase comes into effect on 1 January. Together with the proposed road tax rise in April, the industry will be watching the economic recovery takes place.