The Department for Transport (DfT) MoT Consultation is expected to be issued in the near future, but has already been delayed several times.
The consultation will investigate the viability of delaying the first MoT test until vehicles are four years old. They would then only be checked every two years. Vehicles currently receive their first MoT test at three years old, and are then re-tested annually.
Stephen Coles, head of MoT operations for the Retail Motor Industry Federation (RMIF), said: "Prolonged uncertainty over the future of the MoT is causing disquiet in the motor sector, and it must stop; the Government needs to make its intentions toward the test clear as soon as possible."
Coles said that if the MoT test intervals were extended "much of the MoT test sector could disappear within a year".
A move from a 3-1-1 testing programme to a 4-2-2 will mean that many cars will not need to be tested.
Coles said: "With less custom coming through the doors of MoT test stations, thousands will be forced to shut down, and many thousands of qualified testers made redundant, perhaps half of all the testers in the UK."
The structure of the MoT fee will also be examined, and potential alternatives to the current fixed upper rate will be discussed.
Coles added: “There are suspicions that the Government may be considering tampering with the payment structure of the MoT test.
"If the fee structure were deregulated MoT testing stations could be forced into a price war that would decimate the industry. As the MoT test is a legal requirement for vehicle owners, the fallout from this for consumers could be disastrous. When motorists would need an MoT, they would be unable to get one performed, which would have a knock-on effect on their ability to tax and insure their vehicles."