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Call to continue car scrappage help

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New figures show that more than 250,000 cars have been sold under the Government's scrappage scheme since its introduction in May.

The Society of Motor Manufacturers and Traders (SMMT) cited the data to call for sustained support for the motoring industry.

It said that  between May and November this year, 251,629 vehicles were sold with the £2,000 discount offered under the programme. 

The Government provides £1,000 of the incentive with an equal contribution from manufacturers to new-car buyers in exchange for vehicles more than 10 years old.

In November, the scheme accounted for 21.6% of all new car registrations.

The report also suggested that scrappage may also be having an impact on UK's  vehicular emissions.  It said the average emissions of new cars sold under the scrappage scheme was 133g/km - 27% lower than that of scrapped vehicles. But critics say any such benefits from the scheme are likely to be cancelled out by the volumes of CO2 produced during the manufacturing stage.

SMMT chief executive Paul Everitt said: "Scrappage continues to have a positive impact on vehicle registrations, contributing to the 57.6% increase in November's registrations.

"It has helped to generate consumer confidence and SMMT urges government to sustain the recovery and support the long-term future of the motor industry through its Pre-Budget Report."

© Press Association 2009