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Car sales up by 29.8% in January Car sales up by 29.8% in January
(10 minutes later)
UK car sales rose by 29.8% in January compared with a year earlier, industry figures have shown, despite the cold weather and the rise in VAT.UK car sales rose by 29.8% in January compared with a year earlier, industry figures have shown, despite the cold weather and the rise in VAT.
There were 145,479 cars registered last month, the Society of Motor Manufacturers and Traders (SMMT) said.There were 145,479 cars registered last month, the Society of Motor Manufacturers and Traders (SMMT) said.
Sales were better than expected due to the continuing impact of the government's car scrappage scheme. Sales were better than expected because of the continuing impact of the government's car scrappage scheme.
Earlier this month, the government announced that it was extending the scrappage scheme to the end of March.Earlier this month, the government announced that it was extending the scrappage scheme to the end of March.
New car sales have increased year-on-year in each of the past seven months. The scheme, which pays motorists £2,000 to trade in an old car for a new one, accounted for almost one in five car sales in January.
New car sales have now increased year-on-year in each of the past seven months.
Falling sales
Despite the encouraging figures, the SMMT predicted a slow year ahead for car manufacturers.
"Industry expects another difficult year, with the availability of finance, consumer confidence and sustaining demand post-scrappage key to performance in the second half of the year," said the society's chief executive Paul Everitt.
It forecast sales for this year of 1.82 million cars, a fall of 9% compared with the 1.99 million cars sold last year.
This was the lowest number of cars sold in a year since 1995.