Mladá Boleslav (Reuters) - Volkswagen's Czech unit, Škoda Auto, is considering halting production for two days in October after demand fell following the end of a scrappage subsidy in Germany, a spokesman said on Thursday.

Car exports are a substantial growth driver for the small and open economy and the scrap subsidy scheme, which aimed to prop up car sales by giving consumers money for scraping their old cars, had helped to boost industrial output in recent months.

"It is not definitive yet, it is being considered as part of an annual stock survey that must take place in the factory, which always takes place at the end of October," said Jaroslav Cerny, Skoda spokesman.

"So we want to link (the stoppage) with the public holiday on Oct. 28," he said adding the days off would be Oct. 29-30.

Demand for the Fabia, Škoda's most popular model, was hit the most following the end of the scheme.

Škoda is the country's largest company by sales. Other major car producers include a joint Toyota-PSA plant, and a new Hyundai factory.

August better figures

Meanwhile, the Czech Statistical Office said in a preliminary statement on Thursday that industrial production had fallen by 8.1 percent in the month of August in comparison to the same month a year ago.   The month of July saw the fall by 18.2 percent. 

The figures indicate that Czech industry has gone through some stabilising after its shapr fall in the past months. The news was welcomed by most experts.