Car production down 9%

Car production dipped almost 9% last month but the number of commercial vehicles manufactured rose by 10.7%, it was announced today.

A total of 98,145 cars were made in the UK in July - an 8.9% fall on the July 2009 figure, the Society of Motor Manufacturers and Traders (SMMT) said.

Commercial vehicle (CV) production totalled 9,494 last month and is 43.2% up for the first seven months of this year compared with the January-July 2009 total.

The dip in car production was expected as the comparable figure for last year was boosted by the rise in demand following the introduction of the Government's car scrappage scheme.

Despite the July fall, car production has risen 41.7% in the first seven months of this year.

Engine production fell 3.4% last month but was up 28.7% over the January-to-July period.

SMMT chief executive Paul Everitt said: "UK car and engine production was down in July for the first time since October 2009. The easing of demand was anticipated following the end of scrappage incentives in markets around Europe.

"UK vehicle production is more than 40% up on last year's levels and while we expect some challenging conditions, economic growth has returned in all major markets around the world."