Car production has started off slowly this year as the Society of Motor Manufacturers and Traders has reported a 12.5% drop in January.

Chris Macgowan, SMMT chief executive, still remains positive despite the fall.

“'We still host eight volume car manufacturers and more specialist sports car makers than any other European country.

“We hope that yesterday's news at Longbridge will add to that number, and the entire industry looks forward to welcoming Nanjing to the most cosmopolitan manufacturing base in Europe,” said Macgowan.

Nanjing Auto extended its lease to stay at the ex-MG Rover plant in Longbridge for 33-years yesterday.