Demand for luxury cars fuels rise in UK production

UK car production rose by 28.6 per cent in June, thanks to strong overseas demand for British luxury vehicles.

The Society of Motor Manufacturers and Traders (SMMT) confirmed that almost 118,000 cars were produced last month - the eighth month in a row that production has increased.

According to Motor Trader, commercial vehicle output saw a 24.9 per cent rise compared to June last year, with engine production also enjoying an 18.1 per cent increase.

The figures are particularly encouraging for the motor industry, as they represent the first such rise in production since Europe-wide scrappage schemes came to an end.

According to The Telegraph, the increase in production is thanks in no small part to an upturn in demand from abroad for luxury models. A growing number of European buyers are starting to think "I want to sell my Ferrari," and are turning instead to UK brands such as Jaguar and Aston Martin. 

Mike Steventon, from accountancy firm KPMG's Automotive Group, told The Telegraph: "Demand for prestige cars is growing globally, which has led to many of the luxury car manufacturers ramping up production.''

These positive sentiments were echoed by the SMMT's chief executive, Paul Everitt. He told BBC News that ongoing investment in new products and technology was "helping to sustain growth for the sector.''

Most analysts predict a slowdown in production towards the end of the year, as European demand begins to tail off. However, UK-based manufacturers will no doubt be buoyed by the latest figures and will certainly be pleased to hear some positive news.

Tim Pugh, Haverfordwest, Seat Leon FR

Dean McLoughlin, Liverpool, Ford Galaxy