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imageLONDON: British car production rose in July but at a slower pace than in June, according to an industry group which urged the government to make sure the country's exit from the European Union does not hamper the sector.

Britain's overwhelmingly foreign-owned carmakers had urged voters to remain in the 28-member bloc, where over half of British car exports are sold.

According to the Society of Motor Manufacturers and Traders (SMMT), output in July rose 7.6 percent to 126,566 units, driven by a 14.1 percent jump in domestic demand and a 6 percent rise in international demand.

In June, sales rose 10.4 percent compared with the same month a year earlier, led by a 24 percent increase in domestic demand.

On a year-to-date basis to the end of July, production grew 12.3 percent to just over 1 million units, the best performance in 16 years. According to the SMMT, more than three quarters of a million cars built this year are destined for overseas markets.

"Future success will depend on continued new car demand and attracting the next wave of investment so Britain must demonstrate it remains competitive and open for business," SMMT Chief Executive Mike Hawes said.

The automobile sector faces bigger risks from the Brexit negotiations than many others in Britain because the EU imposes a 10 percent import tariff on vehicles from outside the bloc.

Copyright Reuters, 2016

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