LONDON - SALES of new cars in Britain fell 24 per cent during April compared to the same month a year earlier, industry data showed on Thursday, while the rate of decline slowed from March.

Industry body the Society of Motor Manufacturers and Traders (SMMT) said 133,475 new cars were registered in April. Car sales had declined 30.5 per cent in March.

The news is the latest reminder of the problems facing the car industry worldwide, following Fiat's move to rescue ailing automaker Chrysler.

In a bid to drive up new car sales, the British government will next month launch a scheme allowing vehicles to be purchased at a discount.

The government last month announced that from May 18 it will offer motorists a grant worth 2,000 pounds (S$4,308) for the purchase of a new car when trading in a 10-year-old vehicle.

Half of each 2,000-pound payment will come from the government and the other half from car companies. It is expected that around 300,000 drivers will benefit.

'Despite the tough conditions, industry is hopeful that its prospects will improve in the coming months and the steps it has taken will provide the basis for a sustained recovery once growth returns,' SMMT chief executive Paul Everitt said on Thursday.

The trade-in scheme, which will cost the government around 300 million pounds and runs to March 2010, comes following similar, popular steps taken in other European countries, notably Germany. -- AFP