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2013 UK car production passes one million mark

Car production soared last month and has now topped the one million mark for the year so far.

A total of 140,888 cars were built in the UK in September 2013 - 9.9% more than in September last year, according to the Society of Motor Manufacturers and Traders.

The good September figures took the year-so-far total to 1,125,433 - up 3.9% on the January-September 2012 total.

However commercial vehicles production dipped 27.5% to 6,963 units last month, and is 17.9% down year-on-year.

SMMT chief executive Mike Hawes said: "Boosted by strong domestic demand, September's 9.9% rise in car manufacturing reinforces how the sector is one of the UK's biggest success stories of recent years

"This year alone, more than £2.6 billion has been committed across the UK automotive sector, from the supply chain to global car manufacturing brands.

"This long-term financial commitment and robust demand for UK-built products demonstrate the global appetite for high-quality, desirable products borne of the UK's world-class design, research and development and engineering."

The SMMT also announced that a total of 230,743 engines were manufactured in September - up 8.3% on the September 2012 figure.

Year-to-date growth of 1.2% sees UK engine output approach two million units for 2013.

John Leech, KPMG head of automotive, said: "The industry is confident that demand from the Eurozone has stabilised following six straight years of decline and that UK and emerging market demand will continue to be very strong.

“The average price of cars exported is now double that of cars imported which shows that the UK is slowly re-orienting itself as a manufacturer of luxury cars, which is a much more sustainable situation than we have had before.

“The current production run rate is back at pre-recession levels last seen in 2008. Our forecast is that UK car production will continue to rise in 2014, 2015 and 2016 before peaking in 2017 at 1.9 million vehicles.”

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