The data includes a 29.8 per cent increase in the UK, which extended its scrappage scheme for a second time earlier this month Although the government will not provide any additional funding, it said that the scheme will now run to the end of March or until the remaining �70m of incentive funding runs out. Scrappage has accounted for more than 300,000 new registrations in the UK since its introduction last May, equivalent to a fifth of the total sales.
But, after strong gains last year, shares in the UK's auto dealers have slipped recently on worries that the end of the UK's scrappage scheme could see automotive demand slump again in 2010. The Society of Motor Manufacturers and Traders (SMMT) said that despite the solid start to the year, the industry "expects another difficult year" with the availability of finance and consumer confidence key factors in sustaining demand post-scrappage. It forecasts total UK registrations to fall 9 per cent in 2010, to 1.82m units. Europe's ACEA also predicted further falls this year, led by markets where fleet renewal schemes have ended - in Germany, for example, which ended its scrappage scheme in the autumn, the market has already started to contract, falling 4.3 per cent in January.
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