The recently announced scrapping incentive programme in Germany should boost new car sales by around 7% this year, according to automotive market research and consultancy company, Polk.
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Polk forecast the incentives would boost sales this year by around 200,000 units, according to Automobilwoche. That would break through the 3m unit mark.
But the analysis showed that import brands would benefit most, with an 11% increase in sales. Domestic manufacturers would see sales grow an average 5%.
Of the 200,000 additional sales the incentives generate, just 45,000 vehicles will be produced in Germany. Polk forecast car production to reach 5m units, up 0.9% year on year.
Most importantly, however, Polk believes the scrapping incentives will reignite a car market that has been stagnant for a couple of years, saying there is pent up demand waiting to be unleashed.
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By GlobalDataThe German government agreed last week to introduce scrapping incentives to encourage owners of cars aged over nine years to buy new fuel efficient models. The measure was part of the government’s second economic stimulus package. Owners of cars over nine years old would receive a EUR2,500 discount on a new or current year car that meets at least Euro 4 emission standards, as long as the replaced vehicle is scrapped.
PricewaterhouseCoopers forecast the scrapping incentives would boost sales by about 300,000 units.
