The MoT test will remain at its current annual frequency, after the Government dropped plans to move the first test to four years and then to intervals of two years thereafter.
The Government set out plans to review the test amid fears that the original 1960s legislation was obsolete when applied to the advanced technology found in modern-day cars.
Transport secretary Justine Greening announced the Government's decision after figures from the Vehicle and Operator Services Agency (VOSA) revealed that more than 25% of vehicles tested in 2010-2011 had one or more defects missed or incorrectly assessed.
The data also showed that the roadworthiness of one in eight cars had been incorrectly assessed.
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Justine Greening said: 'Our garages are crucial to ensuring that Britains roads continue to be among the safest in the world. Most are doing good work, but the latest data shows that there is room for improvement.
'I want each motorist to be confident that a visit to the garage ends with their car repaired to a high standard by reputable mechanics rather than uncertainty about cost and the quality of service.'
A Government initiative will focus on the performance of MoT testing stations, while it will also help motorists spot 'clocked' vehicles by changing MoT certificates to include mileage data covering the car's previous three years.
By working with motoring organisations, the Government hopes to provide a user-generated review system of MoT testing stations.