The Society of Motor Manufacturers and Traders (SMMT) has increased its forecasts for new car registrations in the UK in 2010 after a better-than-expected first quarter.
The SMMT predicted in January that 1.817 million new cars would be registered in the UK in 2010, which would be an 8.9 per cent drop on last year's registrations. However, a positive first quarter has led the SMMT to improve its forecast by 107,000 units to 1.924m, which would be a 3.6 per cent drop on 2009.
SMMT chief excecutive Paul Everitt said the industry remained cautiously optimistic, despite the scrappage incentive scheme having come to an end in March.
"SMMT’s latest forecasts reflect the better than expected results in the first quarter and improving consumer confidence," he said.
"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."
The SMMT will next revise its new car registration forecast in July.