Sales of superminis are soaring but car manufacturers are still struggling to shift stock.
Latest figures show a 47.3% increase in supermini sales year-on-year - with What Car?'s Car of the Year, the new Ford Fiesta, selling in the highest numbers.
However, car sales overall were down nearly 22% year-on-year.
As a result, the Society of Motor Manufacturers and Traders (SMMT) warned that urgent government action was still needed to slow the decline.
'Other European countries have been proactive in assisting their automotive industries,' said Paul Everitt, SMMT chief executive. 'It is imperative that UK Government increases the pace in responding to industry proposals for a scrappage scheme, and access to finance and credit.'