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The latest figures from the Society of Motor Manufacturers and Traders (SMMT) show that UK new car registrations have increased by nearly 30 per cent so far this year.

Total January sales of 145,479 represent a growth in sales for the seventh consecutive month. The Government Scrappage Scheme - which has now been extended to the end of March - accounted for 17.8 per cent of the overall sales.

"The increase in January new car registrations provides a better than expected start to 2010," said Paul Everitt, SMMT chief executive. "Scrappage continues to lift demand successfully and today's announcement of a continuation of the scheme to the end of March will allow the maximum number of people to benefit from the budget that's still available."

Ford registered the most cars of any manufacturer, with 22,128 cars sold in the first month of this year, with the Ford Fiesta Britain's best-selling car. Meanwhile off-road manufacturers Land Rover and Jeep both performed strongly, perhaps as a result of the heavy snowfall across the country during the start of the year.

However, despite the recent boost in sales, the prediction is that overall demand over the coming year will fall by nine per cent, to around 1.82million registrations.

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