New car registrations have fallen by 24.8 per cent since May 2008, the Society of Motor Manufacturers and Traders (SMMT) said today.

Almost 135,000 cars were sold in May 2009 – a quarter less than last May’s total of 179,000.

But although the government’s scrappage scheme has seen an average 3,181 new cars ordered per day since it began on May 18, many of these orders have not yet translated into registrations due to buyers waiting for their cars to be delivered.

The scheme allows buyers to scrap a ten-year-old vehicle in exchange for a £2,000 discount on a new car.

Could you scrap your car for £2,000? Find out on Auto Trader’s scrappage site

SMMT chief executive Paul Everitt said: “While consumer confidence is improving, the UK motor industry is still facing a difficult economic climate.

“We have seen an encouraging start to the scrappage incentive scheme with 35,000 orders being placed since it was announced, although it will take time to feed into registration figures.”

Ford currently owns the biggest market share after selling 16.53 per cent of all new cars in May.

Vauxhall and Volkswagen are close behind with 11.41 per cent and 8.89 per cent respectively.

Despite the overall slump in sales more than 90 per cent of dealers have reported an increase in buyer enquiries since the scrappage scheme was announced.

Retail Motor Industry Federation director Sue Robinson said: “Car sales should see a significant increase in the coming months as a result of the scrappage scheme.”

Hyundai claims to have sold the most cars under the scrappage scheme with 9,000 orders taken in the past month. These figures have not yet translated into registrations.

The best-selling cars in May 2009

1. Ford Fiesta – 7,040
2. Ford Focus – 6,693
3. Vauxhall Corsa – 5,525
4. Volkswagen Golf – 3,961
5. Vauxhall Astra – 3,549
6. Peugeot 207 – 3,103
7. Mini Cooper – 2,650
8. Ford Mondeo – 2,647
9. Nissan Qashqai – 2,629
10. Vauxhall Insignia – 2,602

View images of the new Ford Fiesta: