Exports driving surge in UK car production

Car production in the UK leapt by 10.7 per cent in August as growing exports made up for poor domestic demand.

Figures from the Society of Motor Manufacturers and Traders (SMMT) show 86,250 cars were made in the UK last month, with more than 67,000 going for export. The number of cars heading for sale on the home market was down 9.2 per cent year-on-year.

Commercial vehicle output grew 9.3 per cent compared to August 2010, while UK engine production was up 14.4 per cent.

The figures follow news earlier this week that Jaguar Land Rover is investing £355 million to build low-emission engines in Wolverhampton, potentially creating thousands of jobs, while British car firm CPP Global Holdings said it would build a new version of 1960s sports car the Jensen Interceptor at Jaguar’s old Browns Lane site in Coventry.

SMMT chief executive Paul Everitt said: “A manufacturing-led recovery is taking shape with August’s automotive output up more than 10 per cent and a recent wave of private investment securing long-term growth for the UK sector.”

He said there was more growth to come in 2012. Car output is now up over the first eight months of 2011, but commercial vehicle production remains down 4 per cent.