Scrappage continues to prove popular in Germany

Year-on-year new car sales in Germany were up 29.5 per cent in July, as the success of the country’s scrappage incentive scheme continued.

Just under 340,000 units were sold in Germany last month, bringing total sales so far in 2009 to 2.4 million units, an increase of 26.6 per cent on 2008 levels.

Sales in July were again led by smaller models, with Fiat, Peugeot, Renault and Skoda proving particularly popular.

The German automotive industry association, VDA, said car production in Germany had stabilised at a low level, but said the industry faced a long uphill climb before sales and output reached the levels of 2007 and 2008.

Germany introduced its scrappage incentive scheme in February and it will run to the end of 2009. Buyers get a discount of 2500 euros (£2100) on a new car when they trade in a model aged nine years or over.

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