Currently reading: World car sales ready to rocket

Britain is heading for a new-car market of three million registrations by 2008, up from two and a half million today, according to Britain’s leading automotive economist.

Prof Garel Rhys of Cardiff Business School predicts economic growth, and low inflation and interest rates, will fuel demand.

Global vehicle output – currently 180m a year – will also soar. ‘In America there are two people per vehicle, but in countries like India the number is closer to 900,’ said Prof Rhys. ‘That gap will close as developing economies grow.’

Factories around the world will build as many new vehicles in the next 20 years as they did in the last 100, Prof Rhys added.

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