Light vehicle manufacture output 'to increase next year'

Date: 21/12/2009

Light vehicle manufacture output is likely to increase by around eight per cent in 2010, according to PricewaterhouseCoopers.

Autoexpert at the company Michael Gartside noted that light vehicle assembly in the UK has increased for the first time on a year-on-year basis since 2008.

He explained that the increase is due to car scrappage schemes across Europe and improving economic conditions.

Mr Gartside noted that as scrappage schemes are scaled back in the New Year and the economic climate conditions to be challenging, uncertainty is likely to surround new car demand in 2010.

His comments follow the release of fresh statistics from the Society of Motor Manufacturers and Traders, which reveal car output in November was up 15.7 per cent compared to the previous month.

Meanwhile commercial vehicle continues to drop, although the rate of decline has slowed down.

"December is likely to see far more dramatic gains, due in part to the very low level of output in 2008, but going into 2010 there is still a high degree of uncertainty surrounding overall new car demand," Mr Gartside added.