Government action is needed to restore consumer confidence to encourage them back to car showrooms, the Society of Motor Manufacturers and Traders (SMMT) has claimed.

A new report released by the SMMT revealed the number of cars purchased in October dropped to 128,352, the steepest month-on-month fall so far in 2008.

The UK automotive market is forecast to have turned over 2.15 million units by the end of this year, a figure which is likely to plummet to 1.92 million units by the end of 2009.

SMMT chief executive Paul Everitt said: "Cuts in interest rates that are swiftly passed on to consumers, scrapping planned increases in VED and maintaining public expenditure on new vehicles are essential parts of the package required by industry."

The weakness in the market may reflect the current global financial crisis with drivers keen to cut overall motoring costs of purchasing new models, fuel consumption, car insurance and maintenance costs.

Motorists have been advised by the Driving Standards Agency that petrol consumption could be lowered and outgoings therefore reduced by driving more efficiently.

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