Scrappage scheme reaches 330,000 orders

New cars registered through the scrappage scheme has nearly reached the 330,000 mark, as the scheme to boost car sales enters its final month.

The scheme is set to close on March 31, or sooner if the total orders through the scheme reach 400,000 mark. By the end  of February 324,991 new cars were registered through the scrappage scheme with scrappage orders accounted for 19.6 per cent of all new car registrations in February, the latest data from the Society of Motor Manufacturers and Traders (SMMT) reveals.

Average CO₂ emissions of a car bought through the scheme were 132.7g/km, 9.9 per cent below the overall new car market average and 27 per cent below a scrapped car’s figure.

Commenting on the data, SMMT chief executive Paul Everitt said: “The scrappage scheme ends this month and has provided a vital stimulus during a difficult period.  The scheme has lifted the market from the lows of early 2009, with around 330,000 registrations by the end of February.Industry must now work to sustain this momentum and is urging government to postpone the introduction of the first year rate of VED and avoid dampening demand while the economic recovery remains fragile.”

Since the scheme opened in May 2009, 73 per cent of all cars registered through the scheme up to the end of February were from the mini and supermini segments, helping to boost the market share of these cars. As a result, these two segments accounted for 42.0 per cent of all cars registered over the same period. The scheme also boosted the sale of petrol cars, which accounted for 84.4 per centof cars bought through the scrappage scheme over the May to February period, compared with 58.4 per cent in the overall market.

As the scheme helped to boost the sales of small, fuel efficient cars, it is accredited as helping to reduce average new car emissions. According to the society, new car sold in the UK in 2009 emitted just 149.5g/km of CO₂, down 5.4 per cent on the 2008 figure and 21.2 per cent better than the 1997 base level. The rate of reduction was the best on record, three times the average rate achieved since data was first measured in 1997.

Tax incentives, the scrappage scheme, the recession and technological advancements from the carmakers are all credited as helping reduce average new car emissions for the 12th successive year.

Author: Faye Sunderland, March 9th, 2010
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