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Rise in vehicle production revealed

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The motor industry was boosted by an increase in car and commercial vehicle production last month.

According to figures released by the Society of Motor Manufacturers and Traders (SMMT), in total 112,798 cars were manufactured in October - up 6% in comparison with the same month last year.

The rise is expected to lead to an increase in the number of people taking out car insurance.

Meanwhile, commercial vehicle (CV) production also shot up by 47.1% to 11,674.

The number of cars produced in the January-October period in the UK rose 31.1% year-on-year to 1,050,689, while CV output for the first 10 months of this year reached 103,201, up 39% compared with 2009.

However, engine output dropped 5.3% year-on-year last month, but was up 19.7% for the January-October period.

SMMT chief executive Paul Everitt said today: "The vehicle production rise last month signals steady improvement in global vehicle markets and the strength of the UK product line-up."

He went on: "It is extremely important that the Government continues to champion the role of vehicle manufacturing in rebalancing the national economy and works with the automotive industry to create conditions for increased investment in research and development, skills and capital equipment.

"The industry's focus on low-carbon technology and its global reach can help generate the private sector growth the country needs."

© Press Association 2010