The Society of Motor Manufacturers and Traders (SMMT) has revised its new car registration forecast for 2009 up by 100,000 units since the last quarterly revision in July 2009.
This has been done to reflect the positive impact the scrappage scheme is having on new car registrations.
Total new car registrations are anticipated to be down 9.6% for the full year with a further decline expected in 2010.
The outlook remains "challenging" for vans, but stability should be evident over the next 12 months with further recovery in 2011, but volumes will remain below pre-recession levels.
“The scrappage incentive scheme has had a demonstrably positive impact on new car registrations in 2009 and will continue to do so into 2010.
"SMMT’s latest forecasts confirm that the recovery remains fragile and the Government needs to continue to give priority to measures that support consumer and business confidence,” said Paul Everitt, SMMT chief executive.
The SMMT typically revises its forecasts on a quarterly basis with a panel of industry market analysts.
The next forecast is due in January 2010.
Pre-scrappage the lowest forecast for the 2009 market was 1.658 million units.
> SMMT forecasts for cars and LCVs until 2011 can be seen here.