UK production of cars dropped by a third and commercial vehicles by half in November as manufacturers temporarily mothballed assembly plants.
Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said: “The UK motor industry is facing unprecedented challenges and urgent action is now required.
"The sector has seen falls in demand, extended plant closures and the first signs of redundancies in the supply chain.
“Without swift action and the ability to access credit and finance, significant damage will be done to the nation’s industrial capability – leaving the UK poorly equipped to take advantage of any global growth when it returns.”
Production for the year to November has dropped 2.7%. Of the 1,589,402 vehicles produced, 75.7% are for export markets.