Car scrappage scheme 'makes up 20% of sales'

Contractors in the automotive sector may have been given a significant boost to their chances of finding work thanks to the car scrappage scheme.

The end date for the government-backed initiative was extended into March 2010 by Whitehall policymakers last week, news which is likely to have been greeted warmly by automotive contractors.

According to data generated by the Society of Motor Manufacturers and Traders (SMMT), 25,846 cars were sold through the scheme in January, accounting for 17.8 per cent of the month's total purchases.

Since it was launched until the end of last month, the scrappage incentive has made up more than a fifth of all new car sales.

"Scrappage continues to provide an important stimulus to the new car market," said Paul Everitt, chief executive of the SMMT.

Last week, the organisation revealed that purchases of new autos rose to 145,479 in January, a 30 per cent increase on the total recorded 12 months previously.

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