Page last updated at 09:25 GMT, Friday, 4 December 2009

UK car sales rise by 57.6% in November

Car showroom
The industry has seen improvement due to the scrappage scheme

UK car sales rose by 57.6% in November compared with a year earlier, industry figures have shown.

There were 158,082 cars registered last month, the Society of Motor Manufacturers and Traders (SMMT) said, up from a "weak" November 2008.

So far this year, 1.84 million cars have been sold in the UK, 8.8% lower than at the same point last year.

The SMMT said the continuing impact of the UK government's scrappage scheme was helping to drive car sales.

New car sales have increased year-on-year in each of the past five months.

"The increase in new car registrations in November reflects the positive impact of the scrappage incentive scheme, customers avoiding the VAT increase in January and the very difficult conditions we experienced a year ago," said Paul Everitt, SMMT chief executive.

'Uncertain'

The SMMT said that the outlook for the car industry was "uncertain" when the scrappage scheme ends and VAT returns to 17.5%, as well as new first year road tax rates coming into effect in April.

"Much will rest on the wider economic recovery," the body said.

In September, the government announced that the scrappage scheme, which it introduced in May, would continue, at a cost of £100m.

The scheme allows motorists to trade in cars more than 10 years old in return for a £2,000 subsidy on a new model.

The extension incorporates an extra 100,000 vehicles, including vans more than eight years old.

The scrappage scheme accounted for 21.6% of all new car registrations in November, the SMMT said.

Ford's Fiesta was the best selling model in November, as it has been in nine months of this year.



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