The SMMT calls for government help to boost new UK car sales.

The Society of Motor Manufacturers and Traders (SMMT) has reported UK car sales are down 30.5% in March 2009 compared to March 2008.

This news will be seen as yet another blow to the car industry, which is already suffering heavily from the effects of the recession. It is also particularly bad news as March is when new registrations come out and has been the largest volume month in the last five consecutive years since the change to biannual registrations.

Superminis, however, appear to be bucking the trend with the Ford Fiesta, Vauxhall Corsa and Peugeot 207 all appearing in the top 10 best sellers of March. The Ford Fiesta was the best-selling model for a fifth consecutive month, and the success of the superminis has helped to propel the segment to a high of 36.6%, up from 35.9% in March 2008.

Hopes of a recovery for the UK car market are pinned on the Chancellor of the Exchequer, Alistair Darling, announcing market incentives in the forthcoming Budget, due to be announced on 22 April.

Paul Everitt, Chief Executive of SMMT said: “March new car registrations are a barometer of confidence in the economy, from businesses and consumers alike. The fall in the market shows that government needs to do more to boost confidence.

“A scrappage scheme will provide the incentive needed and the evidence is clear that schemes already implemented across Europe do work to increase demand. The UK is the only major European market not to implement the scheme.”

Germany, France and Italy have all seen rises in car sales compared to 2008, Germany significantly so, with an increase of nearly 40%.