Car production increase in August 26th September 2005

UK car production figures were higher for August than the same month last year, according to the Society for Motor Manufacturers and Traders (SMMT).

Data released by the Office for National Statistics (ONS) showed an increase in production of 16.6 per cent over last year, with export growth of 26.6 per cent.

Rising car production figures also correspond to the latest sales figures from the SMMT, which show that sales of diesel-engine variants are continuing to rise as consumers shy away from soaring petrol prices.

Diesel associated vehicle sales rose by 10.7 per cent in August of this year, accounting for 36.3 per cent of all new cars sold in the UK.

The figures serve to highlight the increasing turn towards diesel fuel following the effects of this summer's US hurricanes on already rising petrol prices.

SMMT chief executive, Christopher Macgowan, said that the boost in August production was "welcome", although he still expected a fall of around 75,000 units by the end of the year.

"Solid domestic sales signal the potential for future growth, as do recovering European markets. We do, however, remain cautious as the current economic conditions are proving to be more challenging than expected for all businesses," he said.


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