Car production down 8.9% in July

Car production in the UK fell by 8.9% in July - the first year-on-year decline since October 2009, new figures show.

Engine production was down 3.4% on the year, but commercial vehicle output (CV) rose 10.7% to 9,494 last month, according to the Society of Motor Manufacturers and Traders (SMMT).

The group said 98,145 cars were made in July, but the drop was not unexpected because the car scrappage scheme, which has now ended, drove up demand during the same time last year.

Overall car production for the first seven months of the year is still 41.7% higher than the total for January-July 2009, while CV production for the period is up 43.2% and engine production has risen 28.7%.

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."

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