Scrappage incentives revive car demand
Car sales rose in several big European and Asian markets last month, lifted largely by government scrapping incentives aimed at reviving consumer demand.
The numbers give weight to the notion that stimulus measures are pulling the global motor industry out of its deep downturn, but carmakers and industry analysts warn that sales could fall again when they expire.
Scrapping bonuses, which encourage consumers to trade in old cars for new ones, lifted vehicle sales in Spain, France and South Korea in June.
Registrations of new cars rose by 7.1 per cent in France – Europe’s second-largest car market – and fell by a smaller year-on-year 15.9 per cent in Spain’s shattered automotive market in June, as the bonuses encouraged more buyers back into showrooms.
Source: Financial Times
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