The car scrappage scheme introduced recently by the government to help the auto industry has started having positive effect. The scheme was modelled on a similar scheme in Germanay which gave the German car industry a significant boost.

The UK version pay drivers to exchange their old car for a new one, government pays the drive £2,000 towards a new car.

The car industry which has been losing up to 25% sales almost year after year saw a slight slow down in the decline to just 15% in other words the car scrappage scheme has at least contributed a growth of at least 10%.

The Society of Motor Manufacturers and Traders (SMMT) said 176,264 units were sold during the first month of the car scrappage scheme coming into effect.