Car production slowed by 7.5% in May to 118,866 units, but is still up 10.6% at 693,123 units year-to-date.

Paul Everitt, Society of Motor Manufacturers and Traders chief executive, said: “The slowdown in May reflects a cautious approach to demand across Western Europe.

“Year-to-date volumes remain positive and are up 66,332 units over the same period in 2007.

"The outlook for UK automotive manufacturing remains optimistic with strong demand in many emerging markets."

Commercial vehicle production continued its upward trend in May with a 4.4% rise in May and 10% up year-to-date.