The organisation’s latest figures show that output fell 11.2% last month compared to July 2014, with domestic demand falling 24% and export demand down 7.6%. Year-to-date output is down 1.4% to 911,307 units, with domestic demand up 8.0% and export demand down 3.9%.

Mike Hawes, SMMT chief executive, said: “Car production is traditionally subject to a degree of fluctuation during the quieter summer months with some manufacturers pausing production to invest in upgrades and prepare for new model launches, as well as to manage holiday leave. The industry remains in a strong position, with more than 911,000 cars produced so far this year and some significant new model introductions due in the autumn.” 

John Leech, head of automotive at KPMG UK, commented: “The improving European market is benefiting the UK volume manufacturers such as Nissan, Toyota, Vauxhall and Honda, and therefore we remain confident that the UK remains on course to beat its all-time production record in 2018.”