UK new vehicle manufacturing declined by 11.9 per cent to 417,232 units in the first six months of the year, according to the latest figures published by the Society of Motor Manufacturers and Traders.

The decline was softened by a 6.6 per cent increase in car production in June, although this was in comparison with last year when model changeovers and supply chain issues stymied output.

UK car production remains export-focused, with 76.9 per cent of output headed overseas year-to-date and greater certainty now returning to key markets.

The EU remains the main destination for UK car exports (54.4 per cent share), followed by the US (15.9 per cent) China (7.5 per cent), Turkey (4.1 per cent) and Japan (2.7 per cent), with these five destinations alone accounting for more than eight in 10 overseas sales.

Despite three straight months of declining export volumes culminating in an 18.7 per cent drop in June, the US maintained its position as the UK's biggest single export market underscoring the importance of the UK-US trade deal.

That deal, which came into force on June 30, gives the UK reduced tariff rates into the US automotive market, which can become a basis for future growth.

Rapid implementation of the new Industrial Strategy, however, with wider measures to reduce energy costs, accelerate infrastructure, and address skills gaps, could restore the UK's competitive edge, returning Britain to a top 15 global auto manufacturing location and providing an additional £50 billion economic windfall.

The government's automotive sector strategy, DRIVE35, also sets out a package of measures which will support the sector and its economic and environmental ambitions.

Tthe announcement of the Electric Car Grant, which provides £650 million of fiscal incentives for EVs, there is the potential to energise the domestic market that underpins the UK's attractiveness as an industrial investment opportunity.

Mike Hawes, SMMT chief executive, said: "Global economic uncertainty and trade protectionism have taken their toll on automotive production across the globe, with the UK no exception. The figures are not, therefore, unexpected but remain very disappointing. However, there are foundations for a return to growth.

"The industry is moving to the technologies that will be the future of mobility,â¯our engineering excellence, highly-skilled workforce and global reputation are strengths, and we have anâ¯Industrial Strategy with advanced manufacturing and automotive at its core. With rapid delivery and the right conditions, UK Automotive can reverse the current decline and deliver the jobs, economic growth and decarbonisation that Britain needs."