New car sales fell 30.5 per cent last month compared with March 2008.

Society of Motor Manufacturers and Traders figures show the new 09 number plates failed to revive the ailing industry.

Sales for the first three months of 2009 are now down 29.7 per cent, although small cars and diesel-powered vehicles showed a sales improvement last month.

The motor industry has been calling on the Government to introduce a car-scrappage scheme whereby owners are offered a financial incentive to get rid of their old vehicle and replace it with a greener model.

The initiative has worked well in other countries and contributed towards the 40 per cent surge in new car sales in Germany last month.

SMMT chief executive Paul Everitt said: "March new-car registrations are a barometer of confidence in the economy, from businesses and consumers alike. The fall in the market shows that the Government needs to do more to boost confidence."

He added: "A scrappage scheme will provide the incentive needed and the evidence is clear that schemes already implemented across Europe do work to increase demand. The UK is the only major European market not to implement a scheme."

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