Car sales up 26.6% in March on year

The Society of Motor Manufacturers and Traders (SMMT) has today announced UK car sales grew by 26.6% in March compared with the same month in 2009, yet again boosted by the Government’s scrappage scheme.

The £400 million initiative, which was launched last May to boost the ailing car industry, paid drivers of cars at least 10 years old £2,000 off the price of a new vehicle.

However, the ‘cash for bangers’ scheme ended on 31 March and the SMMT expects sales to fall as a result.

According to figures from the Business Department, the scheme contributed to around 20% of all new car registrations since its inception.

More than half of buyers (56%) that participated in the scheme said they would not have bought any vehicle at the time if scrappage had not been introduced.

Meanwhile, the SMMT said new registrations rose for the ninth consecutive month in March with a total of 397,383 new cars registered. However, this is compared with a month that had been “particularly difficult”, said the SMMT.

Paul Everitt, SMMT chief executive, comments: “The UK motor industry has enjoyed a better-than-anticipated first quarter of 2010.

“A strong March performance was underpinned by the scrappage incentive and improving demand in the fleet sector.”

Meanwhile the SMMT said the Ford Fiesta was the best selling car again during March, as motorists elected to buy smaller cars.

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