Figures released today show that sales of new cars fell by 30.5 per cent in March compared to the same time last year.

According to the Society of Motor Manufacturers and Traders (SMMT) just 313,912 new cars were registered in March and overall sales from January to March are down by 29.7 per cent.

Paul Everitt, chief executive SMMT 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.

The Government has been called upon by the motor industry to bring in a car-scrappage scheme where financial incentives are given to car owners to replace their car with a greener one.

Mr Everitt said in relation to the scrappage scheme that it would provide the incentive needed.

He added, 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.

With the decline in new car sales overall, there was an 84 per cent rise in sales of small cars, with sales of diesel cars going up by 3 per cent from last year.

March 2009 also saw a huge demand for the Ford Fiesta for the fifth consecutive month.

Best selling cars in March 3009

1. Ford Fiesta

2. Vauxhall Corsa

3. Ford Focus

4. Vauxhall Astra

5. Volkswagen Golf

6. Peugeot 207

7. Audi A3

8. BMW 3 Series

9. Vauxhall Insignia

10. Ford Mondeo