Car production nearly doubles in March

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Car production increased in March, up to 90%, compared with March of 2009; however, the industry body warned that conditions may get tough again due to the end of the scrappage scheme sponsored by the Government.

The figures from the Society of Motoring Manufacturers and Traders show that March is the fifth continuous month in which growth was seen with production rising by 63% in February.

The first three quarters of total output last year were accounted for by exports, although the number of cars produced just for UK buyers has increased by almost double over the past three months raising a total of about 28%.  Commercial vehicle production rose even more by 62%.

The SMMT also stated that the rise in production was bolstered due to the poor numbers of last year, which were a result of manufacturing cutting back as consumer demand wavered and Honda stopping its production at the Swindon, Wiltshire plant for a four month period starting in February.

During the second part of the year however, the ‘cash for bangers’ scheme initiated by the Government gave the auto industry a much needed boost as it offered discounts and incentives to buyers who traded in old cars for newer models.

In total, the scheme resulted in the sale of over 330,000 cars, which accounts for a fifth of all the cars sold during the period.  However, this number is predicted to rise even higher as many of the purchased cars still need to be officially registered.

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