The latest figures released by the SMMT (the Society of Motor Manufacturing and Traders) have shown that car production had an increase of an impressive 28.6% from June 2009 to June 2010. This produced nearly 118,000 cars within the month, dramatically surpassing analysts' expectations.
Although the latest rise has come at a much slower rate than the 54% increase in May, June's results have made it the 8th consecutive month where production levels have increased. Paul Everitt, chief executive at the SMMT, feels the reason for this is due to continued investment in new products and technology which is aiding the sector's growth.
The production increase has also reflected onto the figures. Commercial vehicles rose by 24.9% and engine production increased by 18.1%, so it's been a successful year thus far. However the SMMT are being cautious with their approach due the uncertainty of the next couple of months. They feel that sustaining economic recovery in major markets around the world should remain the industries top priority. It is indisputable that automotive industry has made a dramatic improvement in the last 12 months. The height of the recession caused a major throw back on sales and production but the new levels of consumer confidence and ability to borrow is allowing people to make high ticket purchases again.
Car sales are said to increase as people are trying to make their purchases before the VAT increase in January 2011, recognising this, the motor industry will have a significant influx of used cars. The problem is that while the majority of the country has more disposable income in comparison to what they once had, the amount of people that can actually pay for a vehicle up front is minimal.
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