The UK scrappage scheme continued to encourage growth in the car industry in August with sales up 6% from a year ago, industry figures show.

The Society of Motor Manufacturers and Traders said 67,006 new cars were sold in August, the second consecutive month of rises. However, total sales since the start of 2009 are still 21.5% lower than the same period last year.

The Society attributed the rise to the scrappage incentive scheme introduced in May, in which drivers who trade in a car over 10 years old receive a £2,000 discount off a new car. Half of the discount is paid by the government and half by the car industry.

The announcement was cautiously welcomed by SMMT chief executive Paul Everitt:

“The scrappage incentive scheme is having a positive impact but with consumer and business confidence still fragile, there remain significant risks ahead,” he said.

“It is essential that these early signs of recovery are sustained into 2010,” he added.

The SMMT is also optimistic that demand will be strong for the new ‘59′ plate in September.

August typically accounts for just 3.3% of new car sales, compared with 17% in September.

A number of countries have introduced scrappage schemes to boost car sales, including Germany, France and the US.

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