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08/01/2009
December's decline in new car sales was not as bad as the industry expected.
New car registrations fell by 21.2% in December 2008, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).
However, the association had expected a drop of 35% compared to sales in December 2007. It said that the cut in VAT on 1 December may have helped buoy the motor industry.
Sales over the year totalled 2,131,795 - 11.3% lower than in 2007, and the lowest level since 1996.
Small cars fared better, with the mini class the only one that sold in greater numbers, while superminis saw their share of the market climb to 33.4%, up from 32.1% in 2007.
Fewer diesel cars were sold, but the proportion of diesel-fuelled cars reached an all-time high of 43.6%, up from 40.2% in 2007.
The SMMT predicts that sales will decline by a further 1.78 million units in 2009, reaching the lowest level since 1992.
"2009 will be another difficult year for the UK automotive industry with new vehicle registrations and production significantly reduced," said SMMT chief executive Paul Everitt.
"The extraordinary circumstances we currently face mean that Government support will be required to take advantage of global economic growth when it returns."
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