According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), car output was up for the first time since September 2008 with a 15.7 per cent rise in November.

The SMMT believes this is a result of the impact of the government’s car scrappage scheme and economic stability in a number of major European markets.

Auto expert at PricewaterhouseCoopers Michael Gartside said that uncertainty over the economy and the curtailing of the government’s scrappage scheme will see tough times at the start of 2010.

But he still believes that the upward trend will continue into the new year.

He added that "owing to the measures taken by UK based manufacturers to reduce output and inventory in the first half of 2009, we anticipate that UK light vehicle output will increase by around eight per cent in 2010".

The scrappage scheme will cover 400,000 transactions but will come to an end on February 28th 2010 or when the funding runs out – whichever comes first.

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