Export strength the saving grace for UK car manufacturers

STRONG exports are proving a godsend for British car plants, with production up by almost 4 per cent in the year to date.

Industry figures yesterday showed a total of 98,094 cars were produced in the UK last month - a 1.3 per cent rise on the July 2010 figure.

It means that, at 760,946, car production for the first seven months of this year is up 3.7 per cent compared with the January-July period a year earlier, providing a shot in the arm for related parts suppliers.

Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders (SMMT), which compiled the data, said: "Economic growth remains fragile but thanks to a strong export market, automotive manufacturing continues to outperform the broader economy.

"We expect vehicle and engine production to continue to rise fuelled by demand in the fast-growing Bric (Brazil, Russia, India and China] economies, as well as mainland Europe and the United States."

He added: "The UK industry is globally recognised for its high-quality, innovative design and exceptional reliability."

Solid sales overseas are helping to offset weaker demand closer to home as cash-strapped consumers put big-ticket items on hold. The used-car market is proving more resilient, however.

The figures yesterday from the SMMT showed commercial vehicle (CV) production stuck in reverse, falling 5.9 per cent year-on-year to 9,127 in July. CV production for the year so far is down 5.1 per cent at 70,547.

A total of 183,513 engines were made in the UK last month - 0.7 per cent fewer than in July 2010. Engine production for the year so far, however, is up 4 per cent at more than 1.5 million.

Earlier this month it emerged that Scottish new car registrations had tumbled 13.5 per cent year-on-year in July, compared with a 3.5 per cent fall for the UK as a whole.