UK vehicle production fell by 17.2 per cent in February, with 68,061 units leaving factories, according to the latest figures published today by the Society of Motor Manufacturers and Traders.

Output comprised 65,885 cars (down 10.7 per cent) and 2,176 commercial vehicles (down 74 per cent) as export demand in markets outside Europe remained weak, model changeovers impacted output and CV volumes continued to be affected by a major plant restructuring.

Exports of cars and CVs were down 11.5 per cent and 65.1 per cent, to 53,140 and 1,306 units respectively, though production for overseas buyers still accounted for the majority (80.0 per cent) of total vehicle output.

The EU remained the largest global market for UK plants, taking 63.6 per cent of car exports and 88.9 per cent of CV shipments, and while car exports to the EU rose 5.3 per cent, demand in the US, China and Japan fell, by 34.3 per cent, 66.4 per cent and 6.8 per cent respectively.

Car output for British buyers was down too, declining 7.5 per cent to 12,745 units while CV production for the UK also fell steeply, by 81.2 per cent, down to just 870 units.

Production of battery electric, plug-in hybrid and hybrid cars, meanwhile, fell 2.8 per cent to 26,629 units, although they accounted for an improved 40.4 per cent of car output.

The news comes amid fresh global turmoil, notably in the Middle East, and with the UK sector facing additional pressure from ‘Made in the EU' proposals set out in the European Commission's Industrial Accelerator Act.

As drafted, they would discriminate against UK-made vehicles and components - damaging a trading relationship worth almost £70 billion annually and potentially breaching the EU-UK Trade Cooperation Agreement - the Brexit deal - which all parties worked so hard to secure in 2020.

The SMMT said that Governments must work together to extend full, trusted partner status to the UK automotive sector to ensure choice and affordability for consumers, particularly of zero emission vehicles, on both sides of the Channel.

It would also drive economic growth and security across the UK and Europe, supporting rather than risking jobs and improving industrial competitiveness amid multiple global headwinds.

Mike Hawes, SMMT chief executive, said:"Another decline for UK vehicle production and exports is extremely worrying, given these figures pre-date the crisis in the Middle East.

"While the sector has made efforts to build resilience into its logistics and supply chains post Covid, the conflict adds further strain.

"Now more than ever we must focus on our industrial competitiveness by driving down energy costs, backing our suppliers, supporting our domestic market and securing free and fair trade with Europe."