Car production in Britain is down again, although May's fall was the smallest drop of the year.
Last month a total of 67,745 cars were built, a 43 per cent fall year-on-year.
The Society of Motor Manufacturers (SMMT) said the figures proved the government’s scrappage scheme was starting to have effect, although it added that it would be another month before the true benefits were seen.
The outlook remained “difficult”, it said, but there were positive signs as manufacturers restarted production to meet scrappage orders.
“Prompt action by manufacturers to realign supply with demand has been painful, but was necessary. There is now a direct link between demand in the marketplace and production volumes,” said Paul Everitt, SMMT chief executive.
“The scrappage schemes in place across Europe are now beginning to have a positive impact, although the full benefits will take a little longer to flow down to companies at all levels in the supply chain.”