Car production was up at the start of this year

Car production up 8.9 per cent

Car production accelerated ahead at the start of this year, as the number of cars produced in the UK last month rose 8.9 per cent compared to January last year.

The number of cars produced in the UK last month totalled 110,179 - a rise of 8.9 per cent on the January 2010 figure, the Society of Motor Manufacturers and Traders (SMMT) said.

Commercial vehicle production also rose 8.9 per cent last month to 9,967, with engine manufacturing increasing 12 per cent.

SMMT chief executive Paul Everitt said UK automotive manufacturing made a “flying start to 2011 despite tough economic conditions”.

"The encouraging figures demonstrate ongoing growth in global demand for the high-quality vehicles and engines manufactured in the UK at some of the world's leading sites.

"Automotive is leading the manufacturing revival, but to ensure this positive trend continues, the Government must prioritise UK manufacturing, through a supportive tax system, plus sustained investment in skills, research and development (R&D) and capital equipment,” Everitt said.

“Ahead of the Budget in March, SMMT is urging the Chancellor to provide R&D tax credits for small and large companies, to increase capital allowances and to reflect the sector's importance through the business rates system,” he said.

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