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Govt. incentive boosts car sales

LONDON (Reuters) - New car registrations in Britain rose 2.4 percent on the year in July, the first annual increase in 15 months, helped by a government scheme to boost car sales, the Society of Motor Manufacturers and Traders said yesterday.

The data adds to a raft of stronger data this week on industrial output, service sector activity and house prices.

The SMMT said registrations from private buyers and purchases of small cars drove the year-on-year rise in July, taking total registrations to 157,149 units from 153,420.

"The impact of the scrappage scheme is clear and we are encouraged by the positive impact it has had, increasing new car registrations for the first time since April 2008," said Paul Everitt, SMMT chief executive.

Year-to-date sales are still 22.8 percent lower than this time last year, with 1.1 million cars sold versus 1.4 million in 2008.

Government and car manufacturers are offering discounts on new cars worth £2,000 ($3,395) to buyers prepared to scrap an existing vehicle that is at least 10 years old.

The top-selling cars, both for July and the year to date, were Ford's Fiesta supermini and family-sized Focus, followed by General Motors' Vauxhall Corsa supermini and Vauxhall Astra family car.