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UK car production rose in June for the eighth month in a row

UK car production in June rose by 28.6 per cent year-on-year – making it a 55 per cent increase over the year-to-date.

Production has increased for the eighth month in a row, with a 54% rise seen in May.

Paul Everitt, Society of Motor Manufacturers and Traders chief executive, put the gains down to rising demand in the home and export markets and “investment in new products and technology”.

The figures are no real surprise given production figures last year were the worst for 25 years. However, the continual growth does suggest the sector is seeing signs of genuine recovery.

The government scrappage scheme helped boost demand, but ended in March this year so the continued production rise is encouraging.

Despite this, Everitt urged caution: “The coming months remain uncertain and sustaining economic recovery in major markets around the world remains the industry's top priority."

Production could fall due again due to new austerity measures introduced by the government, but demand could well be higher in months immediately before the VAT rise comes in next January.

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