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UK car sales fall further in April

10:24am GMT, Thursday, 7 May 2009

The number of new car registrations dropped further in April. The number of new car registrations dropped further in April.

According to the Society of Motor Manufacturers and Traders (SMMT), new car registrations in the UK fell 24% in April.

The number of new car registrations fell to just 133,475 units in April – the lowest number of registrations since 1991. The market has declined over the first four months of 2009 by 28.5% or 245,184 units.

The most recent figures mark the eleventh consecutive month of decline for the car registration market.

Demand for all types of car fell in April, except for the mini category which rose slightly, with diesel penetration slipping for the second time this year.

Industry hopes are pinned on the recently announced government-backed car scrappage scheme to revitalise the faltering car market. In a bid to boost demand for new cars, the scrappage scheme offers car owners £2,000 to trade in cars older than ten years for a new car.

Similar scrappage schemes in Germany and other European countries have been reasonably successful. The UK car scrappage initiative will begin on 18 May.

Paul Everitt, SMMT Chief Executive, said: “Despite the tough conditions, industry is hopeful that its prospects will improve in the coming months and the steps it has taken will provide the basis for a sustained recovery once growth returns.

“The UK motor industry remains of strategic importance and will play a key part in generating jobs and prosperity into the future.”

The Ford Focus regained top spot in the best-selling car model for the first time since July 2008. Over the year, the Ford Fiesta remains the UK bestseller.

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Business, Finance, Manufacturing, Retail
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