UK May car registrations fall 24.8 per cent

The SMMT said the scrappage programme was generating orders but it would take time for these to translate into registrations. The scheme came into being on 18 May amid confusion over VAT implementation.

Registrations in the first over first five months of 2009 fell 27.9 per cent.

The mini segment continues to buck overall market trend and reported further growth. Dealers are reporting a shortage of small cars in the marketplace.

"While consumer confidence is improving, the UK motor industry is still facing a difficult economic climate," said SMMT chief executive, Paul Everitt.

"We have seen an encouraging start to the scrappage incentive scheme with 35,000 orders being placed since it was announced, although it will take time to feed into registration figures."

The Retail Motor Industry Federation (RMIF) said the scrappage Scheme should have a significant impact on future car sales.

"We hope that the Vehicle Scrappage Scheme will stimulate the new car market, and encourage consumers back to showrooms," said Sue Robinson,  director of the RMIF National Franchised Dealers Association.

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