Cheer at last for motor industry as new car sales move up a gear

A total of 397,383 new cars were sold in March 2010 – 26.6 per cent more than in March 2009, the Society of Motor Manufacturers and Traders (SMMT) said.

However, the figures should be judged against a tough March market last year that was more than 30 per cent down on March 2008.

The industry body said cars bought under the Government's scrappage scheme accounted for 12.2 per cent of sales last month.

The scrappage scheme, under which motorists were offered 2,000 to trade in cars more than 10 years old for new fuel-efficient vehicles, was an attempt to keep car sales buoyant during the worst economic downturn in decades.

But the recession has contributed to the first peacetime fall in the number of cars on Britain's roads since records began in 1904, the SMMT said.

"The UK motor industry has enjoyed a better than anticipated first quarter of 2010," said Paul Everitt, SMMT chief executive.

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

"The coming months will remain challenging and headline registration numbers are expected to dip, but underlying demand will continue to improve slowly."

The scrappage scheme ended on March 31 after helping 400,000 customers. It was jointly funded by the Government and the motor industry.

Growth in the total number of vehicles on Britain's roads has slowed during recent years and now stands at 31m, a fall of 0.7 per cent compared with 2008, the SMMT said, citing its own annual analysis.

In 1904, there were 8,465 privately registered cars, excluding taxis.

n Car dealer JCT600 yesterday revealed that it plans to hire an extra 20 car sales executives.

Bradford-based JCT600 is seeking staff for its dealerships in Bradford, Leeds, Menston, York, Chesterfield, Sheffield, Castleford, Hull and Newcastle.