UK car production grows despite challenging economic climate | Industry - Car News Apr 2012

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14:45 Friday 04 May 2012

According to the Society of Motor Manufacturers and Traders (SMMT), UK car production saw a modest increase of 0.3 per cent in March as demand for new vehicles remained high.

This is great news for manufacturers and automotive bodies, considering the current economic difficulties which are afflicting both the UK and Europe as a whole.

According to the figures, it was domestic demand for vehicles which prompted the growth with cars manufactured for the local market increasing 9.3 per cent annually. Conversely, cars intended for overseas markets dropped by 1.8 per cent for the same month.

The Chief Executive of the SMMT, Paul Everitt, explained that whilst the current economic situation in Europe is "a concern," the UK is still managing to "win business in important and faster growing export markets."

This is an extremely positive step for British manufacturers and traders and suggests that future sales could be as promising as these recent figures.

Of course, an increase in domestic car sales is not only advantageous for the manufacturers but also offers numerous benefits to drivers and British workers.

This is because the strong demand for new vehicles will prompt manufacturers to continue to develop more innovative models - giving British drivers a greater wealth of choice - whilst the increased production will generate more employment opportunities.

Everitt commented that this situation means "the prospects for the UK motor industry are extremely good" - with investment, job opportunities and increased revenue all potentially being created by global manufacturers.

This is especially true considering the fact that March was not the only month to experience a boost in sales.

According to the figures, vehicle production for the first quarter of the year rose by a total of 10.5 per cent with car production increasing by 12.3 per cent from the same period in 2011.

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