Car production in Britain fell during October, but by the smallest amount this year thanks to the government's scrappage scheme and the global economic recovery.

Output dropped by 6.7% last month versus October 2008 to 106,400, according to the Society of Motor Manufacturers and Traders (SMMT).

More than 800,000 cars have now been made in the UK this year, although that's down 38.1% compared with this time last year, and the SMMT predicts another "difficult year".

Commercial vehicle production was even worse, with output down 39.5% year-on-year and by 60% in the year-to-date.

Further evidence that the car industry is on the up came from recent figures showing new registrations were 31.6% higher last month than in 2008.

"The rate of decline in UK car production continued to fall in October, against a weak 2008," said SMMT chief executive Paul Everitt.

"The scrappage scheme and early signs of recovery in global markets offer some encouragement to UK vehicle producers, but 2010 is expected to be another difficult year for the industry."

He said the SMMT has asked the Chancellor to use the pre-Budget report to help "sustain and strengthen recovery", adding that building business and consumer confidence will be key during the first half of next year.

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