The Society of Motor Manufacturers and Traders (SMMT) has raised its UK car and van market forecasts for 2010 following a better than anticipated first quarter.
The SMMT said that the 2010 projection for cars has been increased by 107,000 units since the last projection (made in January this year) to 1.9m units – still 3.6% down on last year’s scrappage scheme boosted car market.
The increases in expected annual totals are described by the SMMT as a ‘positive sign for industry, reflecting increased confidence and stability and a sustained level of consumer demand’.
Largely unaffected by the scrappage incentive, van registrations are set to be about 8.6% up on last year at 202,000 units.
The car market is projected to edged closer to 2m units in 2011 before a 6% gain takes it to 2.06m units in 2012.
SMMT chief executive Paul Everitt said: “SMMT’s latest forecasts reflect the better than expected results in the first quarter and improving consumer confidence. The coming months will be challenging now that the scrappage scheme has ended, but industry remains cautiously optimistic.
“Sustaining the economic recovery and improving access to more and better priced finance for businesses and consumers should be the priority for any new government.”
SMMT revises its forecasts on a quarterly basis with a panel of industry market analysts. The next forecast is due in July 2010.