There was a big drop in van and truck sales last year.

Registrations reached just 16,131 in December meaning the year ended with a total of van and truck sales of just 221,132, which is down 36.2%.

Van sales last month totalled 14,037, which took the year-end total to 186,386 - down 35.6%.

"Van demand dropped sharply in 2009, though eased at the year-end.

"Business demand and consumer confidence remains low and the effects of recession will be slow to clear in key parts of the commercial vehicle markets.

"It is essential that government helps to sustain economic recovery by encouraging capital investment and more affordable finance," said Paul Everitt, SMMT chief executive.

The Retail Motor Institute (RMI) called on the Government to act.

“With both van and light commercial vehicle sales showing a marked decline in 2009, it is vital that the Government addresses the current lack of confidence in the business sector,” said Sue Robinson, RMI director.

“The future picture for 2010 still looks extremely challenging with low business confidence, uncertainty over the economic recovery and a general election on the horizon.

“The Government must do more to assist the recovery in the distribution and logistics industry.

"Two key areas requiring immediate attention are firstly the reduction of 'red tape', and secondly changes to 'capital allowances', to encourage vital investment in new commercial vehicles."