(RTTNews) - British car production in July declined at the slowest pace in this year as the scrappage scheme boosted the industry, the Society of Motor Manufacturers and Traders Limited or SMMT said Friday.

Car production fell 17.9% year-on-year to 107,635 in July, much slower than the 30.2% decline in June. Production for the year to the end of July was down 45.8% at 518,375.

“The UK motor industry is starting to stabilize but remains fragile,” SMMT chief executive Paul Everitt said.

Industry needs government to deliver support through the automotive assistance programme and encourage banks to provide access to much needed finance and credit, Everitt said.

Further, the SMMT said commercial vehicle output continued to decline sharply, with 59.8% fall in July. In June, production plunged 60.4% fall.

“The commercial vehicle market is suffering from depressed demand across Europe,” Everitt said. “Furthermore, high stock levels mean that vehicle production may not recover as fast as the market.”

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Posted in Categories: Economy, Eurozone, Releases, Stocks, UK.

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