However, even with a decrease of 8.9 per cent in new car production in July, the amount of cars built in the UK for home and foreign markets is still 41.7 per cent higher than the corresponding period in 2009.
New data from the Society of Motoring Manufacturers and Traders (SMMT) shows 98,145 cars were built in the UK in July, making the total number of cars produced this year nearly three quarters of a million.
"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," said SMMT chief executive Paul Everitt.
The UK is the home of several major motoring manufacturer’s factories, including the Vauxhall Ellesmere Port facility, where the Vauxhall Astra is built, and the Ford Transit plant in Southampton.
UK brands such as Jaguar and Land Rover also produce cars and engines in the UK. In total UK production facilities built 26,491 new cars for the UK market and 71,654 for export.
Engine production was also down in July by 3.4 per cent. The total number of engines produced in July was 184,246 – making a total of 1.45 million produced so far this year.
It was better news for commercial vehicles, led by the Ford Transit plant in Southampton. Commercial vehicle production grew by 10.7 per cent in July, adding to a total 43.2 per cent increase in the first seven months of 2010.
The automotive industry turns over £51 billion each year in the UK and employs 800,000 directly or indirectly in the UK.