UK car production off to a flying start in 2011
UK CAR production rose by 8.9% in January – flying in the face of predictions that the automotive sector was set for a difficult start to the year.
The month saw 110,179 cars produced, of which 94,079 were for export. The pattern was similar for Commercial vehicles, which saw an identical growth rate with 9,967 vehicles produced, of which 5,740 were destined for overseas markets.
The picture was even better for engine production, which saw an increase of 12% in January compared with the corresponding month last year.
Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, 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, government must prioritise UK manufacturing, through a supportive tax system, plus sustained investment in skills, R&D and capital equipment. Ahead of the Budget in March.”
He said the SMMT was 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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