The organisation added that output remained flat during the first five months of 2013, falling just 0.6% to 632,804 units. However, it said that demand from the home market continues to grow, fuelling production rises of more than a quarter so far this year.

According to the SMMT, weak demand in European markets has curbed overall car output but independent analysts suggest that UK car output will rise over the full year.

‘Despite output falling this month due to weak European demand, UK car manufacturing in May was above 2007 levels,’ said Mike Baunton, SMMT interim chief executive.

‘Production levels are holding firm for the year so far, testament to the appeal of UK-built products around the world and significant growth in volumes built for the home market. While economic challenges abroad will impact on car output in the short-term, high-value investment by global automotive companies sets UK industry on course for prosperity in the long-term.’

The SMMT also reported a continued downward trend for UK CV manufacturing, with a fall of 20% in May to 7,560 units.

The organisation said the decline was broadly in line with the 16.1% fall seen during the year-to-date.

The SMMT added that output for the home market showed further growth, but could not offset export losses. Export volumes were down almost a third in the month and 31.5% for the first five months of 2013.

‘Commercial vehicle manufacturers continue to battle against weak demand, particularly abroad, with output sliding 20% in May. Demand for UK-built CVs in the home market grew moderately, but this was not enough to lessen the significant drop in export volumes,’ commented Nigel Base, SMMT commercial vehicle manager.

‘2013 is going to be a hard year for the UK's CV manufacturers but there are pockets of positivity with some areas of the industry experiencing growth as operators take advantage of the wide range of CVs built in the UK.’