The UK car industry is in desperate need of financial help as vehicle sales slumped by 30.5% last month alone.

The latest data from the Society of Motor Manufacturers and Traders (SMMT) claims that the number of new UK registrations fell by over 100,000 in March to 313,912 cars. This is particularly bad news for vehicle production as March is the month in which new car registrations come out.

SMMT Chief Executive Paul Everitt has called on the government to boost consumer confidence by introducing new measures such as car scrappage schemes, where motorists are paid to trade in their old cars in order to purchase a new one.

Everitt said:

“The UK is the only major European market not to implement a scheme. It will provide the incentive needed and the evidence is clear that schemes already implemented across Europe do work to increase demand.”

In comparison to the UK’s falling sales figures, Germany boasted a 40% rise in the number of new registrations last month and French vehicle purchases have increased by 10% since adopting a scrappage scheme.

Several dealerships have claimed that motorists are increasingly turning to second hand vehicles, in order to purchase a particular make or model at a lower price.