Car sales up 26.4% in February
The Society of Motor Manufacturers and Traders (SMMT) has today announced UK car sales were up by 26.4% in February compared with the same month in 2009, boosted by the Government’s scrappage scheme.
The £400 million initiative, which was launched last May to boost the ailing car industry, pays drivers of cars at least 10 years old £2,000 off the price of a new vehicle. The £2,000 grant is made up of £1,000 from the Government and £1,000 from the carmaker.
The scheme accounted for almost one in five car sales in February. Furthermore, sales this month are likely to be strong as new registration plates are introduced in March.
However, the scheme is set to end this month.
New registrations rose for the eighth consecutive month in February with a total of 68,686 new cars registered.
However, the SMMT issued caution and said: ”With economic recovery still fragile and uncertainty over the impacts of the Budget in March and a general election in spring, the outlook is subdued.”
It must also be noted that the year-on-year rise was magnified by the fact they were compared with the same month last year – at a time when the industry was suffering due to a slump in demand and production.
Meanwhile the SMMT said the Ford Fiesta was the best selling car during February, as motorists elected to buy smaller cars.