UK scrappage a vital stimulus

The scrappage scheme accounted for 19.6% of all new car registrations in February (LCV 4.5%), on par with the 20.4% share taken over the May 2009 to February period (LCV volumes 3.8%).

Some 324,991 new cars were registered through the UK scrappage scheme by the end of February with the scheme accounting for 19.6% of all new car registrations in February.

Analysts will be particularly interested in the evolution of the UK car market over the next few months. March of last year was low, so we can expect to see a strong March this year, in comparison. And much of the March recovery will be attributable to scrappage.

Final orders through the scheme must be made by the end of March, or sooner if funds run out. The scheme’s impact will diminish during Q2 with market decline expected in the second half of 2010.






Source: Just-Auto