The Society of Motor Manufacturers and Traders (SMMT) has raised its forecasts for the UK car market this year and next.
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Speaking in an SMMT online webinar this afternoon, SMMT chief executive Paul Everitt said that the UK government’s temporary scrappage incentive scheme was ‘working well’ and had ‘kick-started consumer interest in car buying’.
The SMMT forecast now says that the UK car market this year is expected to reach 1.85m units (revised up from 1.72m), with a decline expected in 2010 to 1.73m units (revised up from 1.63m) when the scrappage scheme ends and the market enters ‘payback’ following ‘pulled forward’ sales under the incentive.
Everitt said that 30,000 orders had been processed under the scrappage scheme by the end of June and that 111,000 orders are currently in the scheme.
“Monthly new car registrations will look healthier as we roll into summer and the autumn,” he said.
However, Everitt also drew attention to the serious nature of the problems still facing UK automotive firms in the recession, especially financially stretched suppliers.
In particular, he said there was frustration in the industry over delays in loan funding under the government’s Automotive Assistance Programme.
“There is frustration across the industry over the time taken to get money flowing,” he said.
“However, things are improving and no underspending of the programme is anticipated,” he added.
