Financial Times FT.com

Scrappage incentives revive car demand

By John Reed in London, Jonathan Soble in Tokyo, Varun Sood in Mumbai, and Song Jung-a in Seoul

Published: July 1 2009 22:23 | Last updated: July 1 2009 22:23

Car sales rose in several big European and Asian markets last month, lifted largely by government scrapping incentives aimed at reviving consumer demand.

The numbers give weight to the notion that stimulus measures are pulling the global motor industry out of its deep downturn, but carmakers and industry analysts warn that sales could fall again when they expire.

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