The number of new cars sold in the UK last month rose for the 10th month in a row but at a lower rate than in previous months, according to new industry figures.

New car registrations grew by 11.5 per cent in April compared with the same month last year. However, growth was less than half the 26.6 per cent rise recorded in March and the 26.4 per cent and 29.8 per cent gains registered in February and January respectively.

Data from the Society of Motor Manufacturers and Traders (SMMT) also showed that cars bought under the government's scrappage scheme accounted for just 8 per cent of sales last month.

The SMMT said April’s growth was driven by the private sector and by strong demand for fuel-efficient vehicles .

SMMT chief executive Paul Everitt said: April was another good month for the UK motor industry with private buyers responding positively, despite the end of the scrappage scheme .

Earlier this week the industry body increased its forecasts for new car registrations in 2010 after sales in the first quarter exceeded expectations.

The SMMT improved its forecast for the current year by 107,000 units to 1.9 million new cars, which would represent a 3.6 per cent decline on 2009 instead of the 8.9 per cent drop originally forecast by the group.

Mr Everitt said: SMMT’s latest forecasts reflect the better than expected results in the first quarter and improving consumer confidence.

The coming months will be challenging now that the scrappage scheme has ended, but industry remains cautiously optimistic.