French car sales surge with scrapping incentives

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New car registrations rose 3.1 percent in July, with most new car owners opting to buy French-made models.

Paris – Sales of new cars in France rose 3.1 percent in July, buoyed by the government's cash-for-clunkers programme, the automobile manufacturers' group said on Monday.

Sales at France's biggest carmaker PSA Peugeot Citroen jumped 11.4 percent in July compared to July 2008 while Renault was up 18.5 percent, according to figures released by the CCFA.

French-made models made gains in July with sales up 12.4 percent compared to a drop of 5.6 percent for foreign makes.

France is offering bonuses to car buyers who trade in their old models as part of a scheme to help the ailing car industry during the global downturn and promote more eco-friendly transport.

The new car sales figures were released after Renault last week posted a worse-than-expected first-half net loss of EUR 2.71 billion. Peugeot reported a first-half net loss of EUR 962 million.

AFP / Expatica

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