UK car sales fall further in February

10 March 2009

The number of new car registrations for February in the UK continued to decline as carmakers in the country cut production and jobs and urged the government to do more for the beleaguered auto industry.

The Society for Motor Manufacturers (SMMT) in the UK, releasing the figures for February said that new car registrations fell 21.9 per cent in February to 54,359 units, down from 69,610 the year before.

The market for diesel-powered cars also decreased to 44.1 per cent from 45 per cent in February 2008.

The SMMT said that the overall new car market is likely to fall to 1.72 million units this year, from 2.13 million in 2008 and 2.4 million in 2007. The SMMT also anticipates that the March figure will fall in line with the reduction seen over the first two months of the year.

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

''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,'' he added.