New-car registrations in Britain fell 24 percent in April to 133,475 units, the Society of Motor Manufacturers and Traders said on Thursday, but it expressed optimism that a brighter future awaits.
Registrations in the first four months of this year were 28.5 percent lower, the SMMT said, highlighting the impact of the recession that has put the government's strategy for dealing with struggling carmakers in the spotlight.
The lobby group is hoping government-backed car scrapping incentives, announced in last month's budget, will boost sales in the coming months.
The U.K. is giving motorists a 2,000 pound (about $3,000) discount on a new car when they trade in a car that is more than 10 years old.
A similar program in Germany has led to a big increase registrations while subsidies in France and Italy have helped prevent new-car sales from collapsing.
"Today records the eleventh successive fall in new-car registrations," SMMT CEO Paul Everitt said. "Despite the tough conditions, industry is hopeful that its prospects will improve in the coming months and the steps it has taken will provide the basis for a sustained recovery once growth returns."
Britain's industrial strategy is under intense scrutiny as struggling carmakers lobby for more government support.
The U.K. offered a bridge loan to struggling Birmingham-based van maker LDV earlier this week and is in talks with luxury carmaker Jaguar Land Rover on guaranteeing a more substantial amount of financing.
Weakness in the auto sector has been a key factor driving down British manufacturing output in the past year as the drop in demand has forced many plants to shut and lay off workers.
