Car production continued to fall sharply in January, down by 58.7% to 61,404 units.

Commercial vehicle production also dropped by 59.9% to 8,351 units.

Paul Everitt, Society of Motor Manufacturers and Traders, said: “Following extended winter shutdowns, vehicle output continued to fall in January in line with expectations.

“The extent of the decline highlights the critical need for further government action to deliver the measures already announced and ease access to finance and credit.”

Everitt said other European markets had been lifted by scrappage incentive schemes and the SMMT would continue to call for a UK plan to boost the new vehicle market and support employment throughout the sector.

He said: “The motor industry reiterates its request for an urgent government response.”