New-car registrations in Germany rose 29.5 percent in July to nearly 340,000 units as motorists continued to cash in on government incentives to junk old cars and buy new ones.
The increase brought new-car sales in the first seven months of the year to a record of just under 2.4 million units, a gain of 26.6 percent, data compiled by the KBA motor vehicles agency showed on Tuesday.
Sales in July were again led by the smallest car models, giving a boost to brands such as Fiat, Peugeot, Renault and Skoda.
The German automotive industry association, VDA, said auto production in Germany seemed to have stabilized at a low level now that foreign demand had hit bottom, but said the industry faced a long uphill climb before sales and output reached the levels of 2007 and 2008.
The Berlin government launched in February a subsidy that pays motorists 2,500 euros ($3,598) to scrap cars at least nine years old if they buy a new model from any automaker in exchange. The scheme runs until the end of 2009.
Source: Automotive News