The car industry is pinning its hopes on scrappage being a success after car production in Britain plummeted again.
New data from the Society of Motor Manufacturers and Traders (SMMT) shows that the number of cars produced in the UK fell 55.3 per cent in April compared to last year. Production of commercial vehicles such as vans fell even more sharply, by 65.2 per cent.
Despite a new-found confidence following the scrappage scheme, the figures were worse than March, when production was down by 51.3 per cent.
However they were an improvement on February, when 59 per cent fewer cars were produced.
Many manufacturers have reported increased interest at dealerships after the scrappage scheme was introduced this week.
Paul Everitt, the chief executive of the SMMT, said: "With the scrappage incentive scheme fully operational, the industry is optimistic about the positive impact this will have on the market and on UK production facilities.
“Despite the current difficulties, the UK must prepare for the return of global growth and government support for the industry is an essential part of the process."