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UK car production rises sharply in January news
19 February 2010

Car production in the UK saw a massive increase in January, as it rose 64.8 per cent compared to the same period last year when the auto industry was in the doldrums due to the global financial crisis and recession.

According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), car production in the UK shot up by 64.8 per cent in January, which was compared to a low base in the same month last year, but was the biggest percentage gain since May 1976.

In January 2010, 101,109 cars were produced in Britain, a huge improvement from 61,404 cars made in January 2009, but way behind the figure of 148,644 cars produced in January 2008, reflecting the havoc created by the recession in the UK automotive sector.

Commercial vehicle production went up by 9.6 per cent in January -  the second consecutive monthly rise - indicating that the UK economy is finally emerging from recession.

Of the 101,190 cares produced last month, 73,053 was exported, while 28,137 was sold in the domestic market.

The SMMT said that the UK engine production rose by 26.3 per cent-a modest growth expected in 2010 compared to 25 year low in 2009.
''Vehicle and engine production rose for a third successive month in January, demonstrating the continued success of global scrappage incentive schemes,'' said Paul Everitt, SMMT chief executive.

The car scrappage scheme unveiled by the UK government in May last year, offering a 2,000-incentive to scrap old cars for buying new ones- has boosted sales by about a fifth since its introduction.

''Despite the close of the UK scheme next month, SMMT expects a modest recovery in 2010 output as economic growth, a competitive exchange rate and the introduction of innovative new models to UK plants help to lift manufacturing levels above those seen in 2009,'' he added.

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UK car production rises sharply in January