British vehicle production increased by 10.7 percent last month compared to the same month last year, according to the Society of Motor Manufacturers and Traders on Thursday. The increase was brought about by the strong demand from overseas while domestic demand dropped.
In August, the factories turned out 86,250 vehicles, taking the total number of cars produced in the year to date to 847,196 units, which is an increase of 4.4 percent compared with the results a year ago. Of August's total, 67,288 units were developed for export -- comprising 78 percent of the total. This is an increase of 18 percent from the results a year ago.
As previously mentioned, the number of vehicles to be sold on the domestic market had dropped. Specifically, it decreased by 9 percent on the year to 18,962 units.
The fall comes as Britons suffer the biggest squeeze on disposable income in 30 years. The decrease is also a sign of the shrinking role played by consumer spending in supporting Britain's economy and of a greater reliance on exports.
On the other hand, the improvement suggests the weak British pound may be having an impact on trade. This week, Tata Motors' Jaguar Land Rover disclosed that it would spend 355 million pounds or $561 million in a new engine plant in central England, fighting off competition from India with the support of the British government.