Automotive industry 'set to enjoy demand boost'
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Contract hire organisations and fleet operators are soon likely to notice an improvement in the automotive market.
At least that is the opinion of the Society of Motor Manufacturers and Traders (SMMT), which has claimed that the forthcoming scrappage scheme, to be kick-started next week, will boost demand and support vehicle prices.
SMMT chief executive Paul Everitt commented that the minimum £2,000 incentive to be offered by vehicle manufacturers will increase sales enquiries and restore consumer confidence.
"There has been a good response to the scheme ahead of the official start date and industry is confident that this will be translated into additional orders," he said.
This comes after the Finance and Leasing Association recently claimed that the used car market is also set to fare well over the forthcoming months.
Recent figures revealed that the purchase of new cars on finance was down 27 per cent in March compared with the same period in 2008, while used vehicle purchases were on the up. 
