The Government’s scrappage scheme has reached halfway surpassing 150,000 orders since its launch back in May.
A total of 154,927 cars and vans have been registered to car buyers through the scheme, which gives buyers a £2,000 discount on a new car when an old car is traded in for scrap.
Official figures released today by the Department for Business, Innovation & Skills (BIS) show that the scheme has proved popular with car buyers across the UK with take-up highest in the South East (18 per cent), the East of England (12 per cent), the North West (11 per cent) and South West (11 per cent). These figures reflect a pattern that is broadly in line with national levels of car ownership, with the highest participation rates for the scrappage scheme in regions with the highest levels of car ownership.
Lord Mandelson, Secretary of State for Business said: “I’m pleased that we have already achieved over 150,000 new car orders. This is a great deal for manufacturers and dealers, not to mention the customers.
“The scheme has contributed to the 13.5 per cent jump in car manufacturing and the first growth in new car registrations since April 2008.”
The additional data also reveal that on average, new cars bought under the scheme have CO2 emissions that are 25 per cent lower than the cars scrapped. The average CO2 figure for scrapped cars is estimated to be at least 179 g/km, compared to a much lower 133.9 g/km emissions average for cars bought through the scheme.
The UK scheme, with £300m from Government and matched funding from manufacturers, is intended to provide immediate support on a short-term basis to boost the car industry and its supply chain during the downturn and stimulate demand. It will also get older vehicles off the road and encourage consumers to invest in new, safer, and potentially more environmentally friendly models.
At the current rate of take up, the money to fund the scheme is expected to run out long before the official close in March 2010.
