The German government has reportedly approved an increase in funds for the EUR2,500 scrappage incentive on purchases that has helped to boost its car market this year.
Chancellor Angela Merkel’s cabinet has approved an increase in funds for the car scrapping subsidy to EUR5bn, Reuters said.
The report said that the German government had initially allocated EUR1.5bn to the scheme, but agreed to boost the amount after take-up was much stronger than expected.
The German car market was up by 40% in March and the year-to-date market was up by 18%. The selling rate dipped away from the blistering level of February, but remained strong, at 3.8m units a year.
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