Car production up 8.9% in January

Car insurance companies will be pleased to know that UK car production rose 8.9% year-on-year to 110,179 units in January.

According to new figures released by theSociety of Motor Manufacturers and Traders (SMMT), commercial vehicle production also increased 8.9% year-on-year last month.

A total of 9,967 commercial vehicles were manufactured in January, while UK engine output rose 12%.

Paul Everitt, chief executive of SMMT, said: "UK automotive manufacturing made a flying start to 2011 despite tough economic conditions.

"The encouraging figures demonstrate ongoing growth in global demand for the high-quality vehicles and engines manufactured in the UK at some of the world's leading sites.

"Automotive is leading the manufacturing revival, but to ensure this positive trend continues, the Government must prioritise UK manufacturing, through a supportive tax system, plus sustained investment in skills, research and development (R&D) and capital equipment.

"Ahead of the Budget in March, SMMT is urging the Chancellor to provide R&D tax credits for small and large companies, to increase capital allowances and to reflect the sector's importance through the business rates system."

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