Recent figures released by the Society of Motor Manufacturers and Traders show that car production increased by a record 90.2% last month compared to March 2009.
Swinton, the UK’s leading high street insurance retailer, has hailed the sharp increase in production as a major boost for the car insurance and motor industries.
The production rise represented a fifth month in a row of growth, following the huge dip in production at the beginning of last year.
Steve Chelton, Insurer development manager at Swinton said: "The UK motor industry plays an important role in the economy so the increase in car production is extremely positive news for everyone.
"The surge in production is also likely to have a huge impact on the number of car insurance policies being taken out, as people look for quotes for newer models.
Despite the boost for the motor industry, Swinton is warning against excessive optimism.
Steve Chelton added: "There are still tough times ahead for both the car insurance and motor industries. The scrappage scheme has just ended and there is still very limited access to finance and credit.
"The scrappage scheme had a very positive effect on car sales, following its introduction in May 2009, and as a result reduced the impact of the economic downturn. It will be interesting to see if these production figures continue to increase over the coming months."
— With 580 branches nationwide Swinton is the largest high street insurance broker. — Unlike many other companies in the financial services industry, Swinton is committed to keeping its branches open for business, and part of the community. — Swinton provides a one-stop-shop for the insurance and related needs of its clients, offering home, car, caravan, business, holiday, motorbike and even classic car insurance — With a dedicated team of advisors on hand at every branch to search a panel of insurers to offer quality cover at competitive rates
Contacts: SKV Communications Anoushka Done, Anna Asamoah or Mairead Rodden 0161 838 7770 www.skvcommunications.co.uk/