In the first four months of 2010 car output amounted to 414,357 units, up 64.9 percent ahead of the same period last year. Production for both the local market and the export markets has increased, with home production more than doubling. The UK market bought 28.3 percent of the cars produced in Britain during the first quarter.
Commercial vehicles production also grew 40.8 percent to 10,777 units in April, while UK engine production was up 38.2 percent to 199,568 units. “Output in April is up across the car, commercial vehicle and engine sectors compared to the same time last year, reflecting a good start to the second quarter of 2010,” said the Society of Motor Manufacturers and Traders (SMMT) chief executive, Paul Everitt.
“A number of UK product launches and the introduction of new technologies are helping to sustain demand despite an expected slowdown following the end of the scrappage scheme. The home market saw a significant increase in the month, a positive indication of a strengthening economy and an improvement in consumer confidence,” Everitt added.
Despite the healthy growth, analysts warn that the UK car market could slow down in the following months as the boost provided by the scrappage scheme disappears. This would affect production as well, especially since export demand from continental Europe is weaker.
New car registrations in the UK rose 11.5% in April to 148,793, the tenth successive monthly increase. Following the strong start to the year, the SMMT raised its forecast for the UK car market in 2010 to 1.924 million units.
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