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August 19, 2010    

UK car production falls in July

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by Kay Murchie

Figures published today by the Society of Motor Manufacturers and Traders (SMMT) revealed a sharp fall in UK car production for the month of July.

Car production plummeted by 8.9% against the same month a year ago - the first such fall since October last year.

The SMMT said there were 98,000 cars produced in July.

However, for the year-to-date, car production is still 41.7% higher than in the same period last year, said the SMMT.

Commenting on today’s figures, Paul Everitt, SMMT chief executive, said: “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 whilst we expect some challenging conditions, economic growth has returned in all major markets around the world,” added Mr Everitt.

In the last year or so, the motor industry has been boosted by the scrappage scheme.

The £400 million initiative, which was launched in May 2009 to boost the ailing car industry, paid drivers of cars at least 10 years old £2,000 off the price of a new vehicle.

However, the ‘cash for bangers’ scheme ended on 31 March.

Earlier this month, the SMMT said UK car sales fell by 13.2% in July compared with the same month in 2009.

It was the first fall in a year following the withdrawal of the scrappage scheme and sales are expected to continue their downward trend in the next few months.

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