Is the UK car industry on the mend?
The signs may be encouraging with car sales up by 26.4% in February compared with the same month last year, according to the Society of Motor Manufacturers and Traders (SMMT).
While this must be taken as a positive for the automotive supply chain, it worth remembering special factors such as the government's car scrappage scheme which is due to end soon.
The scrappage scheme, which has been supporting new car sales for the last eight months, is due to finish this month.
The scrappage scheme, which has been supporting new car sales for the last eight months, is due to finish this month.
The scheme, which makes £2,000 available for car buyers trading in an old model for a new one, accounted for 20% of new car sales in February.
Not that the end of the scheme is expected to have an immediate impact. New car sales supported by the scheme remain in the pipeline and may not be registered until June.
So the expectation is that the sense of recovery in the UK car market will continue into March, when new registration plates come out, and even beyond.
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