UK car production declined in September but the decline was the smallest in the past 12 months.

Figures compiled by the Society of Motor Manufacturers & Traders revealed that the number of cars produced in UK in September was 119,616, representing a decline of 16.1 per cent from September 2008.

The decline was small as compared with a drop of 31.5 per cent in August from a year earlier.

The scrappage scheme, which provides a subsidy of £2,000 on the purchase of a new car, has encouraged the sale of new cars.

Paul Everitt, CEO of SMMT, said, "Demand is clearly being underpinned by the scrappage incentive scheme and the extension to the scheme will ensure that demand continues into 2010."

The SMMT expects full-year car sales to soar to 1,928,100, still down by 9.6 per cent from last year.