Motor Industry News

Motor Industry News

Production of cars for UK market hits 5-year high, SMMT reports

The number of cars built for the UK market hit a five-year high in August as the motoring industry continued to benefit from the government's scrappage scheme.

According to new figures released by the Society of Motor Manufacturers and Traders (SMMT), overall production for the month was down by 31.5 per cent when compared to the same period last year.

However, with the government now supporting the scheme which offers buyers a £2,000 incentive to purchase a new car, the retail arm of the UK motoring industry is continuing to grow in strength, with one in three of the vehicles produced in August for the domestic market.

Despite this upturn in fortunes, the SMMT has added to calls for the scrappage scheme, which is expected to come to an end once the £300 million put aside for it runs out at the end of next month, to be extended.

"A continuation of the scrappage incentive scheme through to the original close date of 28 February 2010 would help to sustain growth and bridge uncertainties associated with the ending of VAT discount," the industry body's chief executive Paul Everitt stated.

Meanwhile, Jaguar has announced plans to boost its investment in the UK facilities, with its production line-up set to be expanded over the next 12 to 18 months.

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