New-car registrations in the U.K. in April fell 24% year-on-year, but the head of the industry body that compiles the data is optimistic the introduction of scrappage incentives and other measures will lead to a turnaround.

"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," the Society of Motor Manufacturers and Traders Chief Executive Paul Everitt said in a statement.

The SMMT lobbied hard for the introduction in the U.K. of a car-scrappage plan similar to those in Europe to spur demand for new vehicles after sales collapsed amid recession and financing problems.

The U.K. government April 22 announced plans to introduce incentives. U.K. car owners will be offered GBP2,000 discounts on new vehicles when they trade in cars that are more than 10 years old. The plan applies to vehicles first registered between mid-May and next March.

Scrapping incentives have been effective in cushioning the drop in car sales in Europe in recent months. New-car registrations, a measure of sales, in March fell 9% from the same month a year ago as countries, including Germany, France and Italy, have put in place plans that offer payments for car owners who scrap older vehicles and buy new, fuel-efficient models.

Analysts harbor doubts about the long-term effectiveness of such initiatives: Some argue that as funding for the measures expires, sales will fall sharply unless economies pick up.

As car sales have plummeted, automakers in the past few months have slashed output, cutting working hours and jobs, in a bid to align production with demand.

New-car registrations last month fell to 133,475 vehicles from 175,668 in the same month a year ago. Registrations in the first four months of the year were down 28.5% from 2008 levels.

The figures were better than expected, but the performance was still the worst in April since 1991.

Ford Motor Co. (F) saw sales in April drop 3.6% to 24,579 vehicles from 25,498 in the same month last year and its market share climbed to 18.4% from 14.5%. Its Ford Focus was the best-selling model for the first time since July.

Vauxhall, part of General Motors Corp. (GM), reported 20,665 registrations last month compared to 26,487 a year ago, a 22% decline. Its market share edged up to 15.5% from 15.1%.

 
   Web site: www.smmt.co.uk 
 
   -By Jonathan Buck, Dow Jones Newswires; +44 207 842 9237; jonathan.buck@dowjones.com