According to the Society of Motor Manufacturers and Traders (SMMT) this is the eighth month in a row that the sector has suffered a drop and it faces a “clear and present danger” from the UK leaving the EU without a deal.

This reflects comments from the government’s own business secretary Greg Clarke, who said last week that manufacturers have had to endure “months of uncertainty” around Brexit and the UK’s future relationship with the EU.

“Demand dropped at home and overseas but it was the latter that fell most, with exports down -21.4 per cent to 93,781 units,” the SMMT said.

“Further softening in key Asian and European markets drove much of the decline, with output destined for China down -72.3 per cent and the EU27 -20.0 per cent, while model changes also played a significant part. Meanwhile, manufacturing for the domestic market fell by -4.8 per cent as political uncertainty continued to dent consumer confidence.”

Output from the UK’s car manufacturing sector is now lower than at any point since 2013 the figures show.

This is just the latest blow to the sector, as earlier this month Japanese carmaker Nissan confirmed it will make its next-generation X-Trail vehicles in its home country after moving its manufacture away from its Sunderland plant. 

Mike Hawes, SMMT chief executive, said: “Another month of decline is a serious concern. The industry faces myriad challenges, from falling demand in key markets, to escalating global trade tensions and the need to stay at the forefront of future technology.

“But, the clear and present danger remains the threat of a no-deal Brexit, which is monopolising time and resources, undermining competitiveness.

“Every day a no-deal Brexit remains a possibility is another day automotive companies pay the price in additional and potentially pointless costs. No-deal must be taken off the table immediately and permanently.”

Almost a third of automotive companies responding to a recent SMMT survey said they had postponed or cancelled UK investment decisions because of Brexit, with one in five having already lost business as a direct consequence.

Around one in eight were relocating operations overseas and the same proportion cutting jobs.

Rebecca Long Bailey, shadow business secretary, said: “These figures show why Labour has been so critical of the uncertainty caused by the Prime Minister’s shambolic Brexit negotiations.

“They confirm what Labour has been warning of for months, that the government’s botched Brexit negotiations and the looming prospect of ‘no deal’ is undermining British industry.

“The government must end this chaos and back Labour’s credible alternative plan, including a comprehensive customs union, before it is too late for car manufacturing, the companies in its supply chain and all those who work in it.”

According to the Society of Motor Manufacturers and Traders (SMMT) this is the eighth month in a row that the sector has suffered a drop and it faces a “clear and present danger” from the UK leaving the EU without a deal.

This reflects comments from the government’s own business secretary Greg Clarke, who said last week that manufacturers have had to endure “months of uncertainty” around Brexit and the UK’s future relationship with the EU.

“Demand dropped at home and overseas but it was the latter that fell most, with exports down -21.4 per cent to 93,781 units,” the SMMT said.

“Further softening in key Asian and European markets drove much of the decline, with output destined for China down -72.3 per cent and the EU27 -20.0 per cent, while model changes also played a significant part. Meanwhile, manufacturing for the domestic market fell by -4.8 per cent as political uncertainty continued to dent consumer confidence.”

Output from the UK’s car manufacturing sector is now lower than at any point since 2013 the figures show.

This is just the latest blow to the sector, as earlier this month Japanese carmaker Nissan confirmed it will make its next-generation X-Trail vehicles in its home country after moving its manufacture away from its Sunderland plant. 

Mike Hawes, SMMT chief executive, said: “Another month of decline is a serious concern. The industry faces myriad challenges, from falling demand in key markets, to escalating global trade tensions and the need to stay at the forefront of future technology.

“But, the clear and present danger remains the threat of a no-deal Brexit, which is monopolising time and resources, undermining competitiveness.

“Every day a no-deal Brexit remains a possibility is another day automotive companies pay the price in additional and potentially pointless costs. No-deal must be taken off the table immediately and permanently.”

Almost a third of automotive companies responding to a recent SMMT survey said they had postponed or cancelled UK investment decisions because of Brexit, with one in five having already lost business as a direct consequence.

Around one in eight were relocating operations overseas and the same proportion cutting jobs.

Rebecca Long Bailey, shadow business secretary, said: “These figures show why Labour has been so critical of the uncertainty caused by the Prime Minister’s shambolic Brexit negotiations.

“They confirm what Labour has been warning of for months, that the government’s botched Brexit negotiations and the looming prospect of ‘no deal’ is undermining British industry.

“The government must end this chaos and back Labour’s credible alternative plan, including a comprehensive customs union, before it is too late for car manufacturing, the companies in its supply chain and all those who work in it.”