UK car production in May showed the lowest fall this year, according to the latest figures released by the Society of Motor Manufacturers and Traders (SMMT).
Commercial vehicle production was down by 73.5 per cent while car production dropped by 43 per cent to 67,754 vehicles. The total production in May was at 72,446 vehicles, a 47 per cent drop on last year with the figures showing that 45 per cent of the total cars produced were exported.
Paul Everitt, SMMT chief executive, said: ‘Prompt action by manufacturers to realign supply with demand has been painful, but was necessary. There is now a direct link between demand in the marketplace and production volumes. The scrappage schemes in place across Europe are now beginning to have a positive impact, although the full benefits will take a little longer to flow down to companies at all levels in the supply chain.’
‘Commercial vehicle production is severely affected by low business confidence and economic uncertainty,’ he added. ‘Businesses across the economy are still holding back on new expenditure and will need to see better access to finance and stronger domestic demand.’