The UK automotive industry continues to suffer from the economic downturn.

According to the Society of Motor Manufacturers and Traders (SMMT), the number of new car sales in February was 22% lower than in 2008.

There were 54,359 new car registrations in February this year in comparison to the 69,610 registrations one year earlier.

These latest figures come after a tumultuous few months for the automotive industry with many companies downsizing and closing plants.

Despite 22% being slightly above the expectations for February, there is little sign of the situation improving for the car market in upcoming months.

In the report, the SMMT states that February is typically a low volume month for new car registrations as the licence plate changes in March – March usually accounts for 18% of annual sales as opposed to 3.4% for February.

Paul Everitt, SMMT Chief Executive, said: “New car registrations continue to decline and although government recognises the strategic importance of the UK motor industry, urgent action is still needed.

“Other European countries have been proactive in assisting their automotive industries and it is imperative that UK government increases the pace in responding to industry proposals for a scrappage scheme and access to finance and credit.”

The scrappage scheme proposes that motorists should receive payment for trading in their old cars to buy new ones. This scheme has already been adopted in Germany, France, Italy and Spain. The UK has, however, outlined a loans package worth up to £2.3 million in support of the ailing car market.

The UK automotive industry showed slowdown across all sales types, fuel types and segments, except for the mini sector. Sales of mini cars rose by 47.3% in February and achieved a 42.7% gain over the first two months of this year.

The increase in mini sales has been boosted by the selling power of the Ford Fiesta, which was the UK’s bestselling model for the fourth successive month. The Fiesta was closely followed by the Ford Focus and the Vauxhall Corsa.

The diesel market share also fell slightly in February to 44.1% in 2009 from 45% in 2008.

The SMMT states that the outlook remains bleak for the car industry with overall new car sales expected to drop to 1.72 million units this year, from 2.13m in 2008 and 2.4m in 2007. March car sales are also predicted to fall from last year’s figures.