RTTNews - German car scrappage scheme gave a final boost to car sales on Wednesday, when the EUR 5 billion scheme expired.

New car registrations rose 28% year-on-year in August, according to figures released by the VDA auto federation.

The car scrappage scheme, announced in the beginning of this year, provided an incentive of EUR 2,500 to motorists who buy a new car, scrapping their old vehicle which are at least nine years old. As a consequence, car sales rose for the seventh consecutive month in August. However, car production and exports from Germany dropped for the eleventh month, by 4% and 10%, respectively.

According to the VDA, 275,000 vehicles were sold in Germany in August.

Automakers now fear that sales may fall sharply without the incentive scheme.

In addition to Germany, the U.S., UK, and France have also introduced scrappage scheme to support their ailing auto industry in the wake of economic crisis.

The U.S. ended its $3 billion cash for clunkers scheme last week, which helped the U.S. automakers to sell 450,000 cars so far.

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