Prospects for Commercial Vehicle Industry
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[N the first nine months of 1960, United L Kingdom production of commercial 'chides (including buses) at 335,815 units vas 26.7 per cent, higher than in the orresponding period of 1959. This is tated in a bulletin issued by the iconornist Intelligence Unit.
In the third quarter of 1960 there was a 7 per cent, increase in production of pods vehicles with a carrying capacity of etween 15 cwt. and 6 tons, compared vith the corresponding period in 1959. or goods vehicles over 6 tons the perentage increase was 45.6. Output of Rises, 'coaches and trolleybuses showed n increase of 17.6 per cent. This buoyant lemand for medium and heavy goods chides is attributed to the removal of lurchase tax in April, 1959, and to incertainties regarding possible retationalization.
To a large extent, it is claimed, the lemand for commercial vehicles in the Jnited Kingdom is determined by 3overnment policy, both as regards road regulations, credit and general economic policy, and road and rail competition. The ever-mounting railway deficits and the increase in C licence registrations pose the question of whether or not the Government might at some time be tempted to restrict C licences.
In 1961, however, it is estimated that United Kingdom domestic demand for commercial vehicles is likely to be rather less buoyant. The level of economic activity in the United Kingdom during 1961 is unlikely to show much, if any, improvement over 1960, and in the next few months interest rates are unlikely to be significantly lowered in view of the balance of payments situation.
United Kingdom production of commercial vehicles for the home market in 1961 is likely therefore to fall to some 265-275,000 units. Total production, inclusive of exports, is likely to total around 440,000 for 1960; for 1961, a production figure of 405,000 is forecast.