More cars but fewer commercial vehicles being produced in UK

A total of 98,094 cars were produced in the UK in July 2011 – a 1.3 per cent rise on the figure for the same period last year.

But there were mixed results for the sector, because commercial vehicle production fell last month, dipping 5.9 per cent to 9,127.

One of the reasons for the motor industry performing well, while other areas of the economy continue to struggle, may be down to emerging markets in countries like China and India where increased prosperity has opened up more demand.

At 760,946, car production for the first seven months of this year is up 3.7 per cent compared with the January-July 2010 period.

Production of commercial vehicles for the year so far is down 5.1 per cent at 70,547.

A total of 183,513 engines were made in the UK last month – 0.7 per cent fewer than in July 2010. Engine production for the year so far, however, is up four per cent at more than 1.5 million.

SMMT chief executive Paul Everitt said: “Economic growth remains fragile but thanks to a strong export market, automotive manufacturing continues to outperform the broader economy.

“We expect vehicle and engine production to continue to rise fuelled by demand in the fast-growing Bric (Brazil, Russia, India and China) economies, as well as mainland Europe and the US. The UK industry is globally recognised for its high-quality, innovative design and exceptional reliability.”

The previous government was forced to introduce a scrappage scheme at the height of the recession, using financial incentives to help persuade drivers to replace old cars with new vehicles in an attempt to stimulate the industry.