UK August car production up 10.7%

The number of cars produced in the UK rose 10.7% year-on-year to 86,250 last month, according to new figures released by the Society of Motor Manufacturers and Traders (SMMT).

There was a 4.4% year-on-year rise in car production in the January-August period of this year.

New owners may be soon be rushing tocar insurance providers to take out adequate cover.

A total of 6,433 commercial vehicles were produced in August, up 9.3% year-on-year, while the figure for the first eight months of 2011 dropped 4.0%.

Data also showed a 14.4% increase in UK engine production last month, while the January-August figure was 4.8% higher compared with the corresponding period in the previous year.

Paul Everitt, chief executive of the SMMT, said: "A manufacturing-led recovery is taking shape with August's automotive output up more than 10% and a recent wave of private investment securing long-term growth for the UK sector.

"We are on target to exceed 2010 production volumes this year, with more growth to come in 2012. Government must continue to encourage and incentivise private sector investment in research and development, skills and capital equipment to maintain momentum and deliver lasting opportunities for the UK supply base."

Copyright © Press Association 2011