Production figures for June were 8.9% lower than on the same month last year.
Only 98’000 cars were produced in June, according to the Society of Motor Manufacturers and Traders (SMMT).
However, this year has seen a big recovery in the sector, with production up 42% in the January-June period compared to the same period in 2009.
The fall in June has been blamed on the end of scrappage schemes in European markets. “The easing of demand was anticipated” said SMMT’s chief executive Paul Everitt, “UK vehicle production is more than 40% up on last year’s levels and whilst we expect some challenging conditions, economic growth has returned in all major markets around the world.”
The UK’s scrappage scheme- under which the government paid buyers £2000 if they scrapped a car that was more than ten years old- ended in March this year.
Total vehicle production fell by 7.5% over the same period last year, whilst commercial vehicle production rose by 10.7
Overall, 808’000 vehicles have been produced so far this year, an increase of 41.9% over the same period last year.
