UK car production declined by 8.9% in July in a sign of slowing demand at home and in major European export markets.

However, car production in the first seven months of the year was up 41.7% at 734,805 units.

Commercial vehicle output grew 10.7% in July and 43.2% in first seven months.

“UK car and engine production was down in July for the first time since October 2009. The easing of demand was anticipated following the end of scrappage incentives in markets around Europe,” said SMMT chief executive, 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.”