The body said that a -15.2 per cent decline in June marked the thirteenth consecutive month of negative growth and 666,521 cars rolled off production lines in the first six months of 2019, a year-on-year fall of 168,052 units.

The number of cars built for export fell by -19.8 per cent in June and by -21.0 per cent in the first half of the year, with just over half a million units shipped overseas following softening of key overseas markets and global trade tensions.

The SMMT said that exports to the sector’s top global markets fell by double digits, with the US down -12.9 per cent, China down -53.1 per cent, Japan -10.5 per cent and Turkey -93.0 per cent.

Demand in the UK’s biggest market, the EU, also fell, by -15.6 per cent, although it still accounts for 57 per cent of all UK car exports, the highest first half dependence since 2016.

The SMMT also reported that inward investment into the sector “effectively stopped” in the first half of the year.

The trade association published new research indicating that more than £330m has already been spent by the automotive sector on contingency planning for the UK withdrawing from the EU without an agreement.

Money has been spent on stockpiling materials, securing warehouse capacity, additional insurance and training in new customs procedures.

“Today’s figures are the result of global instability compounded by ongoing fear of ‘no deal’,” said Mike Hawes, chief executive of SMMT.

“This fear is causing investment to stall, as hundreds of millions of pounds are diverted to Brexit cliff-edge mitigation – money that would be better spent tackling technological and environmental challenges.

“The industry’s foundations are fundamentally strong, however, and we’re ready to work with the new government to build on these through the industrial strategy. We need an internationally competitive business environment to encourage more investment, more innovation and more growth.

“That starts with an ambitious Brexit deal that maintains frictionless trade and we look to the new administration to get a deal done quickly so manufacturers can get back to the business of building cars and helping deliver a brighter future for Britain.”

A series of blows have hit the sector in recent months, with Honda announcing that it will close its Swindon factory in 2021, and Ford saying its Bridgend engine plant in South Wales will close in September 2020 with the loss of 1,700 jobs.

Conversely, BMW recently announced that it will build electric versions of the Mini in its Oxford factory later this year.

The body said that a -15.2 per cent decline in June marked the thirteenth consecutive month of negative growth and 666,521 cars rolled off production lines in the first six months of 2019, a year-on-year fall of 168,052 units.

The number of cars built for export fell by -19.8 per cent in June and by -21.0 per cent in the first half of the year, with just over half a million units shipped overseas following softening of key overseas markets and global trade tensions.

The SMMT said that exports to the sector’s top global markets fell by double digits, with the US down -12.9 per cent, China down -53.1 per cent, Japan -10.5 per cent and Turkey -93.0 per cent.

Demand in the UK’s biggest market, the EU, also fell, by -15.6 per cent, although it still accounts for 57 per cent of all UK car exports, the highest first half dependence since 2016.

The SMMT also reported that inward investment into the sector “effectively stopped” in the first half of the year.

The trade association published new research indicating that more than £330m has already been spent by the automotive sector on contingency planning for the UK withdrawing from the EU without an agreement.

Money has been spent on stockpiling materials, securing warehouse capacity, additional insurance and training in new customs procedures.

“Today’s figures are the result of global instability compounded by ongoing fear of ‘no deal’,” said Mike Hawes, chief executive of SMMT.

“This fear is causing investment to stall, as hundreds of millions of pounds are diverted to Brexit cliff-edge mitigation – money that would be better spent tackling technological and environmental challenges.

“The industry’s foundations are fundamentally strong, however, and we’re ready to work with the new government to build on these through the industrial strategy. We need an internationally competitive business environment to encourage more investment, more innovation and more growth.

“That starts with an ambitious Brexit deal that maintains frictionless trade and we look to the new administration to get a deal done quickly so manufacturers can get back to the business of building cars and helping deliver a brighter future for Britain.”

A series of blows have hit the sector in recent months, with Honda announcing that it will close its Swindon factory in 2021, and Ford saying its Bridgend engine plant in South Wales will close in September 2020 with the loss of 1,700 jobs.

Conversely, BMW recently announced that it will build electric versions of the Mini in its Oxford factory later this year.