UK car production fell heavily in July dropping 8.9% on the same month last year as just over 98,000 cars were produced in the month, according to the Society of Motor Manufacturers and Traders (SMMT).
The drop comes after a run of eight straight months when production increased.
“The easing of demand was anticipated following the end of scrappage incentives in markets around Europe,” said SMMT chief Paul Everitt.
“UK vehicle production is more than 40% up on last year’s levels and whilst we expect some challenging conditions, economic growth has returned in all major markets around the world.”
Total vehicle production was down by 7.5% to 107,578 in the month, and engine and engine production fell 3.4% last month.
And car production for the year-to-date was 41.7% higher than in the same period in 2009, the SMMT said.
The government scrappage scheme introduced last year but which ended in March had helped to boost demand.