More than 60,000 cars have been sold under the government’s scrappage scheme, figures released today show.

Business Secretary Lord Mandelson said that the strong uptake of the scheme, which was launched just two months ago, showed that the initiative was a success. Consumers know a good deal when they see one. These figures speak for themselves,” he said.

However, the scheme’s popularity could mean that the £300 million of government money allocated to the scheme could be exhausted far sooner than the March 2010 deadline. Over a tenth of the funding had been used up by the end of May.

A spokeswoman for the Department for Business, Enterprise and Regulatory Reform (BERR) refused to disclose how much funding remained, but said that no extra money would be committed to the scheme. “We said it would be until March 2010 or until the money ran out.”

Under the scheme, motorists who trade in a car over 10 years of age can receive a £2,000 discount towards a new car. The initiative, announced in April’s budget report, was launched at the beginning of May as a way of kick-starting the UK’s ailing car industry.

A similar scheme was introduced in Germany earlier this year.

Some commentators have accused the government of bailing out troubled car manufacturers from Europe, the US and East Asia through the scheme. However, the chief executive of the UK’s Society of Motor Manufacturers and Traders, Paul Everitt, supports the scheme. “The benefits of this scheme go beyond imported vehicles and help and sustain jobs in our sector,” he said.

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