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UK automobile industry maintains recovery trend in June 2010 news
23 July 2010

The UK automobile industry has recovered after collapsing during the global recession as production increased eighth month in a row, rising by 28.6 per cent in June compared to the same period last year.

The June increase was despite the UK government ending its car scrappage scheme in March, showing that the car industry is maintaining growth momentum after production levels fell to a 25-year low last year.

The Society of Motor Manufacturers and Traders (SMMT) yesterday said that a total of 117,938 cars were produced in June 2010, an increase by 28.6 per cent and was up 55 per cent in the first six months compared to the same period last year.

Although production increased for the eighth month in a row, the rate was slower than the 54 per cent rise seen in May.

Commercial vehicle output rose 24.9 per cent in June to 10,656 units and 49.6 per cent in first six months to 64,606 units, while engine production was up 18.1 per cent in June to 237,655 units and 35.3 per cent over the year-to-date to 1.27 million units, said the SMMT.

"UK automotive production rose in June with steady improvement across the car, commercial vehicle and engine sectors against a weak 2009." said Paul Everitt, SMMT's chief executive.

"Continued investment in new products and technology is helping to sustain growth for the sector while rising demand from export and home markets is maintaining momentum.

He however cautioned that the coming months remain uncertain and sustaining economic recovery in major markets around the world remains the industry's top priority.

In the short term, UK car production could fall since the government has started introducing austerity measures in order to cut budget deficit, but is likely to pick up in October, November and December as consumers generally buy new cars ahead of the VAT increase in January.

Jaguar Land Rover sold 20,189 units last month, a 47 per cent increase year-on-year. Jaguar sales rose 59 per cent to 6,776 units, while Land Rover sales increased by 41 per cent to 13,413 units.

UK automotive production figures June 2010

Source:
Cars
Commercial Vehicles
Total Vehicles
Total Engines
SMMT Ltd
Jun-10
YTD 2010
Jun-10
YTD 2010
Jun-10
YTD 2010
Jun-10
YTD 2010
Total
117,938
636,660
10,656
64,606
128,594
701,266
237,655
1,269,824
% change
28.6%
55.0%
24.9%
49.6%
28.3%
54.5%
18.1%
35.3%
Export
84,679
456,249
7,290
45,000
91,969
501,249
168,885
925,754
% change
16.9%
39.5%
24.5%
38.1%
17.5%
39.4%
14.7%
28.4%
% of total
71.8%
71.7%
68.4%
69.7%
71.5%
71.5%
71.1%
72.9%
Home
33,259
180,411
3,366
19,626
36,625
200,017
68,770
344,070
% change
72.4%
115.5%
25.7%
85.3%
66.7%
112.1%
27.3%
58.0%
% of total
28.2%
28.3%
31.6%
30.4%
28.5%
28.5%
28.9%
27.1%




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UK automobile industry maintains recovery trend in June 2010