Figures released by the SMMT show that car output in Britain continued to grow in August.

The improvement is against exceptionally low recession-hit output levels in 2009. Analysts are cautious on the outlook given weak demand at home and a mixed picture in major export markets (with a falling car market in Europe).

UK car output was up 37.3% in the month of August (77,882 units) and up 41.3% over the year-to-date (812,687 units).

The SMMT said that commercial vehicle output rose 22.1% in August (5,885 units) and 41.4% in first eight months (79,985 units). Engine production was up 15.4% for the month (at 115,804 units) and 27.7% for the year-to-date (1,569,966 units).
 
“UK vehicle and engine production continues to lead a strong manufacturing recovery,” said SMMT chief executive, Paul Everitt.

“The UK is an important part of the global automotive industry, exporting cars, commercial vehicles and engines to markets around the world. There are still significant challenges ahead and government must do all it can to encourage continued international investment in UK based R&D, skills, plant and machinery.”