The Scrappage Incentive Scheme has boosted car registrations by almost 10%, according to figures released by the Society of Motor Manufacturers and Traders.

Hyundai, Toyota, Ford, Kia, Fiat and Nissan had benefited most from the scheme by the end of June. However, scrappage sales had been made in the premium segment, by carmakers such as BMW, Alfa Romeo, Mercedes-Benz and even Porsche.

The data was issued as the SMMT announced June ended on 176,264 units, with its 15.7% decline the smallest drop since July 2008.

Paul Everitt, SMMT chief executive, said: “The scrappage incentive scheme is working well and has encouraged a lot more people back into showrooms.

"In the coming months we will see an increase in the rate of deliveries and this will confirm further progress on the industry’s long road to recovery.”

Scrappage has had a lesser effect on the LCV market where 323 registrations in June represented 1.9% of all van sales.

A report from a European Union think-tank has indicated that Britain’s new £2,000 scrappage scheme will not have the impact of the German scheme, because of comparative high levels of UK personal debt.