UK car sales 24% lower in April

The government has introduced a car scrappage scheme to boost sales

UK car sales fell by 24% in April compared with the same month last year, the latest industry figures have shown.

The number of new cars sold in the UK during the month was 133,475, the lowest since 1991, said the Society of Motor Manufacturers and Traders (SMMT).

The fall is the 11th consecutive monthly decline in new car sales.

The government announced a car scrappage incentive scheme worth £2,000 in last month's Budget in an attempt to boost demand for new cars.

'Tough conditions'

Similar schemes introduced in Europe have succeeded in boosting sales.

TOP 10 SELLING CARS IN THE UK - APRIL 2009 Ford Focus: 8,974 Ford Fiesta: 8,395 Vauxhall Corsa: 7,808 VW Golf: 4,814 Vauxhall Astra: 4,549 Vauxhall Insignia: 3,262 Peugeot 207: 3,136 Audi A3: 2,439 Ford Mondeo: 2,356 Vauxhall Zafira: 2,140 Source: SMMT

A total 613,833 cars were sold during the first four months of the year, 28.5% fewer than the 859,017 cars sold during the same period last year.

Despite the sharp fall in sales, SMMT boss Paul Everitt said the UK motor industry "continues to demonstrate its strength and resilience".

"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," he added.

He did not, however, indicate when sales might begin to grow.

The top five best-selling cars in April, in order, were the Ford Focus, the Ford Fiesta, the Vauxhall Corsa, the Volkswagen Golf and the Vauxhall Astra.

Incentive scheme

The government's car scrappage scheme is not due to start until 18 May, which could mean that motorists hold off on any new purchase until then, the SMMT said.

This would actually dampen demand yet further.

Once the scheme is introduced, however, the society hopes that demand will pick up.

A £2,000 incentive will be paid to motorists who scrap cars registered before 31 August 1999 to buy a new car. Half of the money will be paid by the government and half by the car industry.

A similar scheme in Germany helped car sales rise by 40% in March.

Carmakers across the world are struggling with a massive drop in sales during the economic downturn.