New vehicle production fell by 11.1% in the UK to 84,762 in December.

Year-to-date production also dropped by 9.7% to 1,442,085 according to the latest figures from the Society of Motor Manufacturers and Traders.

“As host to eight volume car manufacturers and more specialist car makers than any other European country, the UK remains a key supplier to world demand,” said Christopher Macgowan, SMMT chief executive.

'However, although in 2006 we saw increased investment in the British motor industry by some global motor giants, it was not enough to offset the impact of continued restructuring across the production base,” he added.