By Alex Brownsell, marketingmagazine.co.uk, 04 September 2009, 09:15am

Scrappage fuels further growth in the car market

LONDON - The government's scrappage incentive scheme has driven further growth in the new car market, with sales in August up 6% year-on-year, according to figures from the Society for Motor Manufacturers and Traders (SMMT).

Ford

The big winners once more were the likes of Hyundai, which saw new car registrations soar by 322% year-on-year, and Kia, which enjoyed a 135% year-on-year rise in sales.

Other beneficiaries on the scrappage scheme in August included Fiat (up 86% year-on-year), Toyota (up 34%), SEAT (up 30%) and Ford (up 17%).

However, a number of manufacturers including Volkswagen, Citroen and Renault failed to turn the £2,000 scrappage incentive into gains.

Troubled General Motors-owned marque Vauxhall posted another fall in new car sales, as August registrations fell by 37%.

‘The scrappage incentive scheme is having a positive impact but with consumer and business confidence still fragile, there remain significant risks ahead. It is essential that these early signs of recovery are sustained into 2010,' said Paul Everitt, chief executive at the SMMT.