New car sales in the UK are expected to drop to around 1.8 million units in 2010, a drop from 1.95m this year.
The government-backed scrappage incentive scheme is scheduled to run out in February and the Society of Motor Manufacturers and Traders (SMMT) chief executive Paul Everitt predicts this will have a major impact on the UK’s new car sales next year.
“We’re about to enter a very uncertain period for the UK car industry,” Everitt told Autocar. “The truth is we just don’t know what’s going happen after scrappage. Our 1.8m units prediction is a conservative one, but there are a lot of factors which could help push sales above or below this.”
Everitt believes the main benefactors from the scrappage scheme are those who wouldn’t have normally bought a new car.
“Those who normally buy new cars have generally been staying away from showrooms over fears of job security and strains on their income,” he said.