Car sales plunge by 17.5pc

UK Car sales plunged by 17.5 per cent in August compared with the same month last year.

The Society of Motor Manufacturers (SMMT) data showed that sales had dropped for a second consecutive month after a 13.2 per cent fall in July.

Howard Archer of Global Insight said: "In contrast, new car registrations had increased 19.9 per cent year-on-year in the first half of 2010, reflecting the fact that sales were still being lifted in the early months of the year by the car scrappage scheme that finished at the end of March.

"Some car sales in the second quarter reflected the lagged impact of the scrappage scheme."