Incentive Schemes Boost European Car Sales In August

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Tuesday, the European Automobile Manufacturers' Association or ACEA said new passenger car registrations grew 3% year-on-year in August after a 2.8% rise in July. Registrations rose for the third straight month.

Passenger car registrations marked its first increase of 2.4% in June after fourteen months of declines. The recovery was led by incentive schemes implemented by various governments in the region.

France was the first country to implement the scrappage scheme in December last year. On September 2, Germany ended its EUR 5 billion scrappage scheme.

UK's Business Secretary Peter Mandelson recently said the government will not extend its GBP 300 billion car scrappage scheme, despite calls to continue the programme from car manufacturers. The scheme is likely to expire in February 2010, or until the government funding runs out.

However, total new car registrations in Europe were down 8.1% year-on-year in the first eight months of the year.

Tuesday, the European Automobile Manufacturers' Association or ACEA said new passenger car registrations grew 3% year-on-year in August after a 2.8% rise in July. Registrations rose for the third straight month. (Market News Provided by RTTNews)