Will governments turn to scrappage schemes to stimulate vehicle sales?

With lockdowns in force across Europe, the automotive industry has seen a dramatic fall in sales. According to the London-based Society of Motor Manufacturers and Traders (SMMT), new car registrations in the UK fell by 44.4% last month as compared to March 2019, representing a steeper fall than at any point during the 2008 financial crisis. This figure is particularly striking given that the UK only entered into lockdown towards the end of the month. According to the SMMT, even more dramatic falls have been reported elsewhere in Europe, with Italy down 85%, France 72% and Spain down 69% for the month.