UK Car production was down 8.9 per cent in July on the same month last year, according to the latest figures released by the Society of Motor Manufacturers and Traders.
It comes after a run of eight straight months when UK production increased.
Just over 98,000 cars were produced during July, but that's still up 41.7 per cent in the year to date. Engine production fell 3.4 per cent last month, but is up 28.7 per cent year on year in the January to July period this year.
"The easing of demand was anticipated following the end of scrappage incentives in markets around Europe," said SMMT chief Paul Everitt.
“UK vehicle production is more than 40 per cent up on last year’s levels and whilst we expect some challenging conditions, economic growth has returned in all major markets around the world.”
Production could fall due further due to new austerity measures introduced by the government, but demand could well be higher in months immediately before the VAT rise comes in next January.