UK car manufacturing slumped in July

Just over 121,000 cars left production lines, with a fall of 35 per cent in models built for the UK, said the Society of Motor Manufacturers and Traders (SMMT).

Car production for export in July fell by 4.2 per cent.

It reflects the performance of the country's biggest car maker, Jaguar Land Rover, which makes its 2.0-litre engines at the i54 site beside the M54.

The West Midlands-based luxury car company has seen sales falling in the UK, Europe and in its key Chinese market, driving the company to a £264m loss in the three months to the end of June on Brexit uncertainty and worries over diesels.

JLR took steps earlier this year to cut production as several of its sites, including Solihull near Birmingham and Halewood on Merseyside, with over 1,000 jobs axed.

And the wider UK slump in production is bad news for the scores of car part manufacturers across the region, facing a dip in demand for their products.

Despite the reduction, the SMMT says the sector remains broadly on track to meet 2018 expectations.

Just under 955,500 cars were built in the first seven months of the year, down by 16 per cent for the UK market and 1.2 per cent for export.

Model changes, operational adjustments and preparations for new emissions standards affected output last month, said the SMMT.

Chief executive Mike Hawes said: "While the industry is undoubtedly feeling the effects of recent uncertainty in the domestic market, drawing long-term conclusions from monthly snapshots requires a health warning.

"The bigger picture is complex and month by month fluctuations are inevitable as manufacturers manage product cycles, operational changes and the delicate balance of supply and demand from market to market.

"To ensure future growth, we need political and economic clarity at home, and the continuation of beneficial trading arrangements with the EU and other key markets."