UK car sales dropped by 24.8 per cent in May compared to the same period last year, new industry figures show.
The Society of Motor Manufacturers (SMMT), who issued the stats, said the market is looking more buoyant than it has done earlier in 2009, but warned it is too early to judge the effect of scrappage, which was introduced on May 18.
The number of new cars sold in the UK during the month was 134,858, compared with 179,272 in May last year.
Overall registrations in 2009 have been 748,691, a 27.9 per cent drop on the first five months of 2008. Car sales have now fallen year-on-year for 13 consecutive months.
Paul Everitt, chief executive of the SMMT, said: “While consumer confidence is improving, the UK motor industry is still facing a difficult economic climate.
“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.”