New car sales plunge by 20 per cent in one month

The number of new cars sold in Britain last month plunged by 21.2 per cent, figures revealed today.

Only 330,295 cars were sold in September, dashing industry hopes for a boost from the new registration plate issued that month.

September new car registrations usually account for more than 17 per cent of the annual total, so today's figures were bleak news for the industry.

The figures are even worse than August, when the Society of Motor Manufacturers and Traders reported an 18.6 per cent slump on the same period last year.

"New car registrations have fallen for the fifth month and represent the most difficult economic conditions the industry has faced in 17 years," said Paul Everitt, SMMT chief executive. " Government action is now needed."

The SMMT figures showed that new cars sales have fallen by 7.5 per cent over the year to date, to just under 1.8 million, while in the last three months sales have dipped by 18.8 per cent.

The SMMT warned that a further drop of 20 per cent in new car sales in the final quarter of the year would leave full-year figures at just over two million, the lowest since 1996.

The downturn has seen Ford introduce a four-day week at its Transit plant in Southampton. And about 600 workers at Sheffield-based car parts supplier LSUK were facing an uncertain future today after the firm was put into administration, less than a week after being taken over by London firm Euro Car Parts.