Scrappage scheme sees 6% jump in car sales
Friday, 04 September 2009 09:57
Car sales rose six per cent in August - with small car sales up strongly.
The Society of Motor Manufacturers and Traders (SMMT) reports a second monthly rise in registrations - citing the government's car scrappage scheme as influencing the market positively.
In August, 67,006 new car registrations were made and SMMT claims the scrappage scheme has turned a predicted six per cent drop to a six per cent rise in sales.
The number of cars sold is still 15 per cent down on the average for August over the last ten years.
Registrations over the first eight months of the year are down 21.5 per cent on a year ago.
Up to August 23rd, most recent government data show, there were 185,273 orders for the car scrappage scheme.
The government scheme offers drivers £2,000 off a new car when they scrap an existing one which is over ten years' old.
The government scrappage scheme was launched in May with enough funding for 300,000 vehicles.
The first month of the scheme saw a fifth of the budget used up and there are fears the final discounts could come soon.
Currently 61 per cent of the funding has been used.
There are now calls for the scheme to be extended - as has been done in France.
Richard Mason, managing director from motoring.co.uk, said: "Having seen such a positive stimulus as a result of the scrappage scheme, I urge the government to follow suit with the French and extend the scheme.
"As the motor industry is showing all the right signs for the early stages of recovery, it would be unwise for the government to hinder the industry's progress by pulling the scheme.
He added the continuation of this scheme was vital for a full recovery to take place.
This week saw the introduction of the new '59' number plate - expected to draw some more demand from buyers.
However, there have been warnings from the industry that the collapse in car production may lead to shortages for certain vehicles.
The biggest selling models in August were the Ford Focus, Ford Fiesta, Hyundai i10, Vauxhall Corsa and VW Golf.
Big growth came from the minis and superminis - up 252.8 per cent and 16.9 per cent respectively in August. Sports car sales were up 25.8 per cent.
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