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Car production rose by 1.8% in June

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Car production in the UK increased by 1.8% in June compared with the same period last year, latest official figures reveal.

A total number of 120,036 vehicles were manufactured in the UK in June, according to the Society of Motor Manufacturers and Traders (SMMT).

The overall production figures during the first six months of 2011 stood at 662,852, up 4.1% on the same period last year.

Engine production increased by 0.8% year-on-year in June, with almost 240,000 engines built.

However, the production of commercial vehicles dropped by 2.2% to 10,425 last month, compared with the corresponding period in 2010. With the figures down 4.9% over the first six months of 2010, van insurance providers may have been issuing more policies for second hand vans.

Chief executive of the SMMT Paul Everitt said: "Sustained investment in research and development, skills and new products by the UK automotive industry is helping to rebalance the economy, but there remain significant challenges."

In the next six months of 2011 car production is expected to reach 100,000, the SMMT has said.

© Press Association 2011