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Car production rises in August

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Official figures have shown that car production rose during August.

The Society of Motor Manufacturers and Traders (SMMT) said that some 86,250 cars were made in Britain last month - up 10.7% on last year.

The SMMT also said that 6,433 commercial vehicles were produced during the month - a rise of 9.3% - suggesting that many new van insurance policies will have been taken out over the past weeks.

In the year to September car production was up 4.4% compared to 2010. However commercial vehicle production was down 4% on the figure for the same period last year.

SMMT chief executive Paul Everitt said: "A manufacturing-led recovery is taking shape with August's automotive output up more than 10% and a recent wave of private investment securing long-term growth for the UK sector.

"We are on target to exceed 2010 production volumes this year, with more growth to come in 2012.

"Government must continue to encourage and incentivise private sector investment in research and development, skills and capital equipment to maintain momentum and deliver lasting opportunities for the UK supply base."

© Press Association 2011