Currently reading: Production boosted by scrappage
Pace of decline in vehicle production slowing to lowest level in 12 months

The fall in UK car production has slowed to its lowest level in 12 months, due to increased demand caused by the scrappage incentive scheme.

September’s figure of 119,616 units produced was 16.1 per cent down on the figure this time last year, but it’s significantly better than 41.2 per cent fall overall in 2009 on 2008’s levels.

SMMT chief executive Paul Everitt said the volume of cars staying in the UK was relatively high due to the effects of scrappage, with one in four staying in the country.

“The rate of decline in new car production slowed to its lowest level in a year with the volume of vehicles being produced for the UK market comparatively high,” he said.

“Demand is clearly being underpinned by the scrappage incentive scheme and the extension to the scheme will ensure that demand continues into 2010.”

The SMMT has also increased its new car registration targets for this year, up by 100,000 units from its last figures from July. It expects to see 1,928,100 new cars registered in 2009, which is 9.6 per cent down on last year’s levels.

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