The UK's car scrappage scheme has started to have a "positive impact" on the industry as new car sales fell at their slowest rate for almost a year.
New car registrations fell by 15.7% in June compared with the same month last year, smaller than May's 25% drop.
The Society of Motor Manufacturers and Traders (SMMT) said 176,264 units were sold during the month.
The scrappage scheme, which offers a £2,000 incentive to scrap old cars, accounted for about 10% of sales.
The scheme came into effect on 18 May.
Car buyers are given a £2,000 discount on a new car if they scrap one that is at least 10 years old. Half of the money will be paid by the government and half by the car industry.
The SMMT said 29,796 vehicles had been sold under the scrappage scheme since its start, while government figures show that, up to 21 June, some 87,000 orders had been placed.
The Department for Business, Innovation and Skills says that at this rate, the scheme would be exhausted by the end of October. It had first forecast that it would last until March.
Professor David Bailey, director of Coventry University Business School, said the pressure would be on the government to extend the scheme into the new year.
But the business department is "adamant" that there are no plans to extend it.
CARS SOLD IN JUNE THROUGH SCRAPPAGE SCHEME
BMW - 160
Fiat - 1,743
Ford - 2,066
Honda - 813
Hyundai - 3,042
Kia - 1,321
Nissan - 1,662
Peugeot - 715
Suzuki - 916
Toyota - 2,586
Source: SMMT
Full article here...