British car output surged almost 65% in January compared with a year earlier, the biggest monthly gain for more than three decades, trade data shows today.
A total of 101,190 new cars were produced in Britain last month on higher demand for new vehicles thanks to a state scrappage scheme, the Society of Motor Manufacturers and Traders (SMMT) said.
The global economic downturn savaged worldwide demand for high-value items like cars, particularly in the first half of 2009, prompting most car makers to curb output.
But several governments, including Britain and Germany, introduced new-for-old schemes. Britain's scrappage scheme allows car-owners to trade in a 10-year-old vehicle for a £2,000 sterling discount on a new car. The cost of the discount is split equally between the British government and car manufacturer.
Car output in Britain soared by 64.8% in January, the biggest monthly gain since May 1976, the SMMT said today.
'Vehicle and engine production rose for a third successive month in January, demonstrating the continued success of global scrappage incentive schemes,' the SMMT said.
'Despite the close of the UK scheme next month, SMMT expects a modest recovery in 2010 output as economic growth, a competitive exchange rate and the introduction of innovative new models to UK plants help to lift manufacturing levels above those seen in 2009,' it added.
