Car production increases again

THE SOCIETY of Motor Manufacturers and Traders (SMMT) said UK manufacturers built 91,282 cars in August, up 16.2%, or 12,705, on the same period in 2012, leaving year-to-date volumes 3.1% ahead of 2012, at 984,545.

The figures showed 20,298 cars were made for the home market this year, up 21.1%, while 70,984 were for export, up 14.8%.

SMMT chief executive Mike Hawes said: "The past 12-months has been one of the most productive since late 2008."

Samuel Tombs, of consultancy Capital Economics, said the CBI figures showed the manufacturing sector "continuing to go from strength to strength".

John Leech, head of automotive at KPMG in the UK, said: "Soaring UK car production is being fuelled by rising demand from both the UK and the eurozone."

He said that while the latest figures may be flattered by the poor results this time last year as Greek and Spanish debt crises gathered pace, UK car production looked set to carry on rising and reach 1.9 million in three years.

The shift towards higher-priced vehicles pointed to a record trade surplus in cars of £8 billion for 2016, Mr Leech added.

By John-Paul Ford Rojas, Press Association