The UK car sales crash down as sales dropped 21 per cent in the last month being “the worst decline in new car and commercial vehicle registrations since 1991,” said Chief Executive of The Society of Motor Manufacturers and Traders.

Carmakers were warned that this would be the worst economic condition faced by manufacturers in 17 years as the credit crunch attacks UK car sales.

Being the fifth consecutive drop in sales of new cars, manufacturers struggle as the major slump in sales continue falling.

Howard Archer, chief UK economist of Global Insight said: "The September performance is particularly worrying and disappointing given that it is a key month for the car industry due to the number plate change that occurs."

As manufactures fear the worst after the major downturn in the UK car manufacturing industry, it is believed that other companies within the supply chain may cave in.

The production of Bentley, Ford, Jaguar, Land Rover and Toyota has already been reduced after the exposure of September’s statistics.

The deficiency in borrowing and higher fuel prices has caused the meltdown of the car manufacturing industry as well as the rise in road tax.

Chief executive of SMMT, Paul Everitt said: “Government action is now needed to restore consumer confidence and boost demand in the real economy. The Chancellor’s pre-Budget report should set out a package of measures to boost demand for new fuel-efficient cars and scrap plans for unfair increases in car tax.”