British car production fell 51.3 per cent in the year to last month as falling demand forced manufacturers to cut output sharply, the Society of Motor Manufacturers and Traders (SMMT) has said.

The number of cars produced last month was 61,829. Of those, 46,458 were for export, down 52.6 per cent on the year, and 15,371 were for the domestic market, a fall of more than 47.2 per cent.

For the first quarter as a whole, production was down 56.6 per cent on a year ago, underlining just how severe Britain's manufacturing slump has been in the global economic crisis.

The SMMT said the 'scrappage' vehicle-exchange scheme, announced by Finance Minister Alistair Darling in the budget, would help, but it would take time for the industry to recover and called for further short-term measures.

Under the scrappage scheme, motorists can apply for a £2,000 ($2,944.6) discount on a new car when they trade in cars more than 10 years old.

The scheme is set to run until March 2010.

The measure is worth £600m with the government putting up half and the rest matched by participating manufacturers. The scheme is similar to one adopted in Germany and other parts of Europe, where the global economic downturn has also taken a heavy toll on car manufacturers. – TradeArabia News Service