According to the German auto importers’ association, the VDIK, the German government sponsored scrappage incentive is continuing to lift the German car market and reduce CO2 emissions from new cars.

VDIK said on Friday that the new car market grew at a double-digit percentage rate in the first quarter despite severe declines in other European countries.

Scrappage incentives in Germany helped to lift the February car market there by 21.5%, year-on-year and a positive result is expected for March also.

According to IHS Global Insight’s Christoph Stuermer, the German authorities are processing 10,000 applications a day and at the current rate, the incentive scheme could run out of funding soon.