DEALERS IN the UK are set to welcome a big increase in new-car orders as the country's car scrappage scheme takes effect, Automotive News Europeis reporting.
It reports that Ford of Britain has received 1,400 orders in advance of the scheme. Other carmakers, it says, are also reporting increased sales inquiries, according to the Society of Motor Manufacturers and Traders.
According to the SMMT website, Renault UK has seen a 30-60 per cent increase in showroom traffic. Honda has seen a 15 per cent increase in sales enquiries. Many other manufacturers are also reporting greater showroom traffic since the announcement of the scheme.
“The scrappage scheme is good news for consumers and the UK motor industry alike. It has already started to get people back into showrooms to kick-start demand in the market,” said Paul Everitt, SMMT chief executive.
“There has been a good response to the scheme ahead of the official start date and industry is confident that this will be translated into additional orders.”
Since Monday, consumers can drive off with a £2,000 (about €2,265) discount on a new car. The £300 million (about €340 million) scrappage scheme, announced in last month’s budget, is intended to boost consumer confidence and kick-start the demand for new cars. Thirty-eight manufacturers are taking part in the scheme, covering the major brands.
The UK has been hit hard by the economic downturn and the country’s new car sales have been down in each of the last 11 months. Over the last four months, new-car registrations were down 28.5 per cent to 613,833 units. This compares to the Irish market, which has seen a 64 per cent drop.