Car production fell by 8.9% in July but has risen by 41.7% year-to-date.

Commercial vehicle output grew by 10.7% in July and 43.2% in the first seven months of the year.

Engine production fell 3.4% but was up 28.7% over the January to July period.

Paul Everitt, SMMT chief executive, said: “UK car and engine production was down in July for the first time since October 2009.

“The easing of demand was anticipated following the end of scrappage incentives in markets around Europe.”

Everitt said that while the SMMT was expecting some challenging conditions, “vehicle production was up year-to-date and economic growth has returned in all major market around the world”.