Motor traders with business insurance experienced a 30.5 per cent fall in new car registrations last month, new figures show.
The Society for Motor Manufacturers and Traders (SMMT) reveal that sales fell to 313,912 units, with the total market for the first quarter of 2009 showing a contraction of 29.7 per cent.
Paul Everitt, chief executive of the SMMT, claims that the March results serve as a barometer of the UK economy.
He states: "The fall in the market shows that government needs to do more to boost confidence."
Commenting on the possible introduction of the scrappage scheme, he suggests this would address this issue and increase demand for new vehicles, benefiting motor traders with business insurance.
Mr Everitt claims that the UK is the only major European market which has not chosen to launch such a scheme.
The SMMT's European Car and Commercial Vehicle Production Outlook report includes details on the initiatives' successes in other countries.
