SMMT revises car sales forecast upwards by 100,000

The SMMT (Society of Motor Manufacturers and Traders) has revised its forecast for 2009 UK car sales upwards by 100,000. At one stage the trade body had forecast that only 1.658 million new cars would be sold this year but now expects 1.928 million units to be delivered, up 100,000 on its previous forecast, which was issued in July.

One important factor in the upward revision was the impact of the government's scrappage scheme, which has recently been extended to cover a total of 400,000 cars. While the scrappage scheme has brought some cheer, the SMMT believes that the recovery is fragile and it expects a further 7.8% dip in the market next year to 1.777 million units – a far cry from conditions in 2007 when 2.404 million new cars found buyers in the UK.