NEW car registrations fell for an eighth consecutive month in February - down 5,262 units to 63,424 – but the 7.7 per cent fall was the smallest decline recorded over this period.
And compared to the same month last year, when the scrappage scheme accounted for almost a fifth of the market, the figures are very encouraging as February is a very low volume month, just ahead of the registration plate change.
The Society of Motor Manufacturers and Traders, who produce the figures, expect the first six months of 2011 to be down by about 8.3 per cent before picking up later in the year.
SMMT chief executive Paul Everitt said: "The UK motor industry is looking for a strong March market to help boost confidence and kick-start demand for the new 11-plate.
"February new car registrations were better than expected and while below 2010 levels, they were significantly ahead of 2009 and on an improving trend."
And he added: "This month's Budget will be critical in determining consumer and business confidence and the ongoing stability of the market. We're looking for certainty on motoring taxes, a freeze on fuel duty and measures that support business investment and access to finance and credit."
Top seller for the month was the Volkswagen Golf, though the Ford Focus still tops the year-to-date chart with 10,065 sales.
In second spot for February was the Vauxhall Corsa followed by the Ford pair of Focus and Fiesta with a trio of Vauxhalls – the Astra, Insignia and Zafira – occupying the next three places.