A drop in the number of post-scrappage new car sales in Germany has led to worries about the effects on the UK market when the scheme finishes at the end of this month.

Germany, which was once Europe’s largest new car market, suffered a 28.8 per cent decrease in new car sales in February this year once the government scrappage incentive scheme stopped in the country.

Italy outsold Germany last month, boosted by the scrappage initiative it still has in place.

Throughout this year, schemes which were implemented to provide short-term boosts to new car sales, will be phased out in the UK, Spain, Italy and France.

Overall European new car sales have been boosted by the success of the initiatives, according to JATO Dynamics.

The UK registered a 26.4 per cent increase in new car sales compared with February last year, according to the leading provider of data and information to the automotive industry.

Some manufacturers have had to finish the scrappage scheme early in the UK, after running out of their allocated allowance of cars.

Orders have been suspended by Fiat, Audi, Volkswagen, Hyundai and Kia already, just under two weeks before the official end date.

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