Car production and sales in the UK and Europe are set to increase next year, according to professional services firm, KPMG. After very good sales last year following consecutive years of recession, 2014 is likely to bring the automotive industry back to its best: '2013 has been fantastic for the automotive industry, the latest UK car manufacturing figures highlighted that 1,286,287 cars were produced in the first 11 months, a rise of 5.4 per cent with sales also up by 9.9 per cent. "The current sales and production run rates are back at pre-recession levels last seen in 2008,î said John Leech, head of automotive at KPMG. Leach says that UK car sales will grow in 2014 but at a slower rate than in 2013, being almost back to their natural long-run average. Growth will ultimately depend on whether car manufacturers continue to provide cheap credit that is currently propping up the market: 'If this cheap credit remains available throughout next year then there is an increasing risk of oversupply of new cars which could raise anxiety regarding a potential shock fall in used car residual values. 'UK car production will grow again for the fifth year running as European car sales start to slowly rise once more. This should also see European car production finally turnaround and grow in 2014 for the first time in seven years.î UK vehicle production is expected to reach 1.9 million vehicles in 2017, up by more than 25 per cent on 2007 levels; in comparison, France, Italy and Spain are expected to be making 33 per cent, 28 per cent and 17 per cent fewer cars over the same period, while Germany will only just be returning to normal levels. The UK's upsurge is really positive, particularly when the Government is investing so much money in new ultra-low carbon vehicle technology, with the aim of re-establishing the automotive industry once more: 'According to KPMG International's 14th Global Automotive Executive Survey consumer enthusiasm for electric cars in 2013 failed to ignite but the outlook in 2014 will start to brighten as range-extended battery-powered cars are launched, like the new 2014 BMW i3,î added Leech.