Car production returns to growth

New cars in transit22/07/11

By Shane Gladstone

Official figures have shown that car production grew during June by 1.8 per cent compared with a year earlier.

The Society of Motor Manufacturers and Traders (SMMT) said that 120,036 vehicles were built in Britain during the month - taking the total number for 2011 to 662,852.

The year total to the end of June was also up 4.1 per cent on the figure for 12 months earlier, the SMMT said. The figures heralded a "welcome return to growth", according to chief executive of the body Paul Everitt.

The month also saw engine production rise 0.8 per cent on the same time last year - with almost 240,000 engines built.

However, production of commercial vehicles was down 2.2 per cent in the month to 10,425. In the six months to the end of June it was down 4.9 per cent, the SMMT said.

Mr Everitt said: "Sustained investment in research and development, skills and new products by the UK automotive industry is helping to rebalance the economy, but there remain significant challenges."