Whereas most markets in the world are seeing double digit percentage drops in car sales throughout the year (U.S. sales were down 37.4% in April), in Germany, the market continues to respond widely to the government's incentive scheme to scrap old cars and buy new ones that was introduced in February. Following a 40 percent leap in car sales in March to around 401,000 units, new car registrations rose by 19.4 percent in April, to about 380,000 units.According to the data provided from the VDIK car importers association, new car sales in Germany during the first four months of the year are at their best level since the record year of 1999.
The incentive scheme pays owners €2,500 or about $3,370 to scrap vehicles at least nine years old if they go and buy a new car from any automaker in exchange. Evidently, seeing the success of the measure , the German government decided to extend the scheme until the end of year.
What's more, the scheme has also significant environmental benefits as older vehicles with higher CO2 emissions are being replaced by newer, cleaner and of course, more fuel efficient models. According to VDIK President Volker Lange, CO2 emissions from the cars registered in Germany during the first quarter of the year were down by around 6.5% over a year ago.
Via: Forbes
