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Figures show rise in car production

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Car production rose 5.8% in September compared with the same month last year, a new study has shown.

A total of 126,548 cars were manufactured last month, taking the total so far this year to 937,891, a 35% rise on the figure recorded in 2009.

An increase in production indicates that more people will be buying new cars, leading to a rise in the number of car insurance policies.

Figures released by the Society of Motor Manufacturers and Traders showed that commercial vehicle production shot up by 16.7% in September 2010 to 11,339. This contributes to a total of 91,527 so far this year - a 38% increase on last year.

Meanwhile, engine production rose by 1.3% to 229,209. Total vehicle production increased by 6.6%, further boosting the motor industry.

SMMT chief executive Paul Everitt said: "UK vehicle production was up 6.6% in September with rises across the car, commercial vehicle and engine sectors, signalling continued improvement in the market.

"In yesterday's spending review, Government outlined some tough decisions, but also committed to a strong growth agenda. Support for low carbon vehicles, skills and R&D will all help to sustain and encourage investment in the UK motor industry."

© Press Association 2010