Car sales still in fast lane

New car sales in the UK sped up for the 11th consecutive month in May, rising 13.5% on the same time last year despite the end of the scrappage scheme, the Society of Motor Manufacturers and Traders said today.

The trade body noted only 2.7% of the car sales were due to the scrappage scheme, which ended on March 31 but still affected some late registrations.

But it warned that demand will fall in the second half of this year as the full impact of the end of the incentive scheme kicks in, and called on the coalition Government to give the industry support. Paul Everitt, chief executive of the SMMT, said: "May was another good month for the UK new car market, although we expect the coming months to be extremely challenging.

"It is essential that the upcoming emergency budget promotes consumer and business confidence to maintain economic recovery."

The number of car registrations rose to 153,095 in May, but that is still 26,177 fewer vehicles than the same time in 2008.

The SMMT said the Ford Focus knocked its smaller sister the Fiesta off the best-selling spot for the first time this year.