Registration of cars traded in through the scrappage scheme accounted for 19.6 per cent of new car sales in February, it has been reported.

By the end of February, 324,991 of all new cars registered had been through the government-funded initiative, according to data from the Society of Motor Manufacturers and Traders (SMMT).

Chief executive of the SMMT, Paul Everitt, said the scheme had provided "vital stimulus during a difficult period".

The scheme was introduced by the government after the Budget last year to boost the car industry on a short-term basis.

Funding for the initiative, which gives buyers a £2,000 discount off their new car, is set to stop at the end of this month.

Not only has the scheme helped new car sales but it has also reduced carbon emissions too.

New cars registered through scrappage produced an average CO2 value of 132.7g/km.

This figure is 9.9 per cent lower than the average emissions of cars registered between May 2009 and February 2010, which was calculated to be 147.3g/km.

Tata Motors has been hit by Daimler’s sale of its 5.34 per cent shares in the company.

India’s largest automotive manufacturer, which owns brands such as Jaguar Land Rover, saw its stock fall almost six per cent in the wake of the sale.

Daimler, the German premium car maker, confirmed the sale, which ended the partnership of the two manufacturers that began in 1954.

Over the past year, share prices in Tata Motors have risen, netting Daimler around €300 million (£272 million) for its stake.

The two companies have turned into competitors over the past couple of years, with Daimler building trucks, which is Tata’s speciality, as the company is the fourth largest truck manufacturer in the world, and premium Jaguar Land Rover products competing with Daimler’s cars.

Daimler is currently building a production plant in Chennai in south-east India to manufacture its trucks.

The manufacturer did not deem its equity participation in Tata to be "necessary" any longer, according to the Wall Street Journal.

Skoda has announced the prices for its improved Fabia and Roomster models, following their debut at the Geneva Motor Show this month.

The new models have been given facelifts with new engines, a fresh look and a host of technical refinements.

Prices start from just £9.330 on-road for the Fabia supermini and from £11,260 for the Roomster MPV.

Both models have a more dynamic new look thanks to their redesigned radiator grille and 3D-shaped headlights.

The new range of engines, with a choice from four petrol and two diesels, have direct fuel injection and many also feature turbocharging technology.

These new technologies have greatly reduced the carbon emissions from the two models as well as making them more fuel efficient.

All engines available in the two new models comply with EU5 emission standards.

Both of the 1.6 litre CR TDI engine units emit less than 110g/km of CO2, which is below the European Union (EU) target levels.

By 2012, the EU hopes to meet target emissions levels of 120g/km for all new cars on the road.

Fiat’s eco:Drive system has been introduced to the car and commercial van fleet market.

The award-winning system, which is fitted in-car, aims to save fuel and reduce carbon emissions.

More than 34,500 motorists have signed up to use the system regularly, with some four million journeys logged and analysed on the eco:Drive website.

It is hoped the new eco:Drive Fleet system will prove successful in fleet vehicles now too with its ability to retrospectively manage mileage and fuel consumption.

The system was launched by Fiat in 2008 and since then it is estimated that around 2,600 tonnes of CO2 have been saved by eco:Drive, which helps motorists improve their driving habits so they are more eco-friendly.

Fiat has topped the European rankings, compiled by JATO Dynamics, for the lowest carbon emissions for the third year in a row.

The brand reduced the CO2 emissions from its range 127.8g/km from 133.7g/km last year.

This means the manufacturer boasts the lowest volume emissions in Europe.

The car industry fears tax hikes may take place in the UK as greener cars are proving to be more successful than expected, it has been reported.

More eco-friendly cars are in demand and therefore production has increased but because of this, the government "won’t raise the revenues it expected", the chief executive of the Society of Motor Manufacturers and Traders, Paul Everitt, told the Independent.

The government has promised tax breaks for cleaner vehicles but it is feared the CO2 thresholds on tax may have to be shifted to avoid the government losing a lot of income.

Mr Everitt told the paper that the government needs to consult with the automotive industry in order to establish a long-term for CO2 taxes and incentives.

Recently, the government revealed a new initiative aimed at providing a monetary incentive to those buying ultra-low carbon vehicles.

From January 2011 buyers will receive a Plug-In Grant of £5,000 off a new low-carbon car, which will account for around 25 per cent of the overall car cost.

The 2010 winner of the Most Highly Anticipated New Car accolade has been revealed to be the BMW-5 series.

Set to go on sale later this month, the German car manufacturer’s new saloon took first place in a poll from car leasing website Contract Hire and Leasing.

The cars in the poll were voted for by visitors to the website, both personal and business users, and of the 520 customers surveyed, 20 per cent voted for the 5-series model.

Overall sales of the 5-series range have already amounted to more than 5.5 million and perhaps the eagerly-anticipated new model will prove to be as successful.

Much of the interior design on the new model, which is available with either a petrol or diesel engine, is based upon those in the BMW 7-series luxury saloon.

The new 5-series model will be the first in its class to have Auto Stop/Start technology, which makes it more fuel and emission-efficient.

BMW’s 3-series model was recently voted as the Most Desirable car by used car website motor.co.uk.

In its Buyer’s Choice Awards, 3-series was found to be the most searched for car on the website.

Lexus has made improvements across its IS range, introducing a new F-sport grade for the 2010 model year.

Inspired by the ultra-high performance IS-F, the F-sport grade cars boast lowered suspension, boot lid spoiler and leather upholstery among other aesthetic features.

The range also has a Europe-wide HDD navigation system and DAB-ready audio system with Bluetooth as well as USB connectivity.

Lexus has developed one of the fastest responding, most accurate navigation systems on the market, which is fitted in the F-sport cars.

The models feature a number of pieces of premium equipment too with rain-sensing windscreen wipers, HID headlights with AFS and memory settings for the front seats and door mirrors.

Better fuel efficiency and lower carbon emissions are also present in the new model, with CO2 emissions falling to 227g/km for manual transmission and from 214 to 209g/km for the automatic.

Lexus is committed to improving its cars to make them more environmentally friendly and is the only luxury car manufacturer with a range of fully-hybrid vehicles already on the market.

The updated IS range with the F-sport grade models is on sale now from £23,450 on-road.

The average emissions of a new car was cut by its biggest ever margin last year, it has been reported.

Impact of the recession and the government-funded scrappage scheme boosted the technological advancements made by vehicle manufacturers, according to the New Car CO2 Report from the Society of Motor Manufacturers and Traders (SMMT).

In 2009 the average new car sold in the UK emitted 149.5g/km, which was down 5.4 per cent on the 2008 figure, according to data from the SMMT, which supports and promotes the interests of the UK automotive industry.

The rate of the decrease in emission levels was the best recorded, three times the average rate since data was first compiled in 1997.

All model segments registered reductions, with MPVs and 4×4s making the best improvements on their 1997 base levels.

The scrappage scheme, which was implemented last May to provide a short-term boost to the struggling new car market, had a noticeable impact on the CO2 level drop.

During the scheme, the average new car bought emitted 133.3g/km, which was 26.8 per cent less CO2 than the average scrapped car.

Fiat has topped the CO2 rankings in Europe for the third year running.

The brand has set new standards in reducing CO2 emissions with both Fiat and Fiat Group posting some of the lowest volume carbon emissions on the continent, according to JATO.

In 2009 its cars logged emissions of 133.7g/km but this year it improved levels to just 127.8g/km.

This put the manufacturer just ahead of rivals Toyota, Peugeot and Renault which all recorded levels above 130g/km.

Fiat also ranked first among motor groups, with its volume of 131g/km beating Toyota, PSA, Renault and Hyundai.

The statistics have been compiled from the average emissions of all Fiat cars sold in 2009.

Already the brand is ahead of the game, beating the European target emissions level of 130g/km for all new cars to be achieved by 2012.

Fiat has a two-pronged approach to becoming eco-friendly, by implementing technological solutions to lower emissions and by raising motorist awareness to adopt more environmentally-friendly driving habits.

Toyota has been revealing its latest electric vehicle (EV) developments at the Geneva Motor Show.

The manufacturer will showcase its plug-in hybrid vehicles, hydrogen fuel cell technologies and battery design.

Some 600 Prius hybrid cars are already on the road as part of a worldwide leasing project, 200 of them are in Europe.

Before the car goes on general sale, Toyota will be analysing information such as the charging patterns of the model and obtaining user feedback to verify the vehicle’s overall environmental and technological performance.

In a project jointly funded by Panasonic EV energy, the brand is bettering the battery technology used in its vehicles.

By September this year, more than one million batteries a year will be manufactured by three facilities in Japan.

In an attempt to reduce the cost of its batteries, Toyota is looking at alternative ways to power hybrid vehicles apart from by using lithium-ion batteries, which recharge more quickly than nickel-metal hydride types.

The UK government has set up a scheme, in place from January next year, to provide an incentive to motorists looking to buy ultra-low carbon vehicles.

Those purchasing new low-carbon cars can obtain discounts of £5,000 off the models.