Scrappage scheme sales of 17,014 units accounted for 9.7% of June's UK new car registrations and 29,796 vehicles have been registered under the scheme since it began on 18 May, the Society of Motor Manufacturers and Traders (SMMT) said on Monday.

The scheme, which got off to a shaky start over some taxation detail, with several automakers refusing initially to participate, "is proving hugely popular and is working well", the SMMT said.

In June, almost 10% of the total 176,264 new car registrations were as a result of the scrappage incentive scheme, giving a much needed boost to the UK motor industry. In the commercial vehicle sector, 323 vans were registered under the scheme, accounting for 1.9% of the total scrappage registrations and 1.9% of overall van registrations in June.

"The scrappage incentive scheme is working well and has encouraged a lot more people back into showrooms," said SMMT chief executive Paul Everitt.

"In the coming months, we will see an increase in the rate of deliveries and this will confirm further progress on the industry's long road to recovery."

"The true impact of the vehicle scrappage scheme will be felt over the next few months, as the volume of orders made via the scheme are processed and consumers receive their cars," said Sue Robinson, director of the RMI National Franchised Dealers Association (NFDA), representing the UK's car dealers.

One positive sign was the return of the private buyer to the new car market, particularly encouraged by the scrappage scheme.

Robinson added: "It can take up to two months for a new car purchase to go from the initial order to the delivery to the customer, so most of the purchases made under the scrappage scheme have yet to translate into sales.

"We expect the full impact of the scheme to make itself felt from next month onwards."

Hyundai (4,664), Ford (4,299) Kia (2,789) and Fiat (2,194) were the top sellers of scrappage scheme cars to the end of June, reflecting their wide ranges of new, small fuel-efficient models.