According to figures released by the Society of Motor Manufacturers and Traders (SMMT) (www.smmt.co.uk), UK car production fell by 13.7% in June, with 136,901 cars being made.

This third consecutive month of decline resulted in a 2.9% year-to-date dip in output; even so, the overall output is still the second-highest for 12 years.

Exports continued to underpin production, with overseas demand falling only marginally (by 0.9%) in the first six months, with 683,826 cars shipped overseas.

The percentage of cars going for export now stands at 78.9% — the highest for five years. Demand from the home market fell by 9.5% to 182,830 units, although production is forecast to rally in the second half of 2017, thanks to the introduction of new models and updates planned for later this year.

Many of these will be from premium brands, helping to cement the UK as the world’s second-biggest producer of premium cars (after Germany).

Mike Hawes, SMMT chief executive, said: “World-class engineering, productivity, strong government collaboration and massive investment in the past few years have helped ‘UK Automotive’ become a global success story.

At the heart of this has been the free and frictionless trade we’ve enjoyed with the EU — by far our biggest customer and supplier. However, Brexit uncertainty is not helping investment, and growth is stalling.”

Meanwhile, engine manufacturing remains robust, with demand up 3.6% in the first half of the year.

Mr Hawes said: “Overall, UK engine manufacturing continues to build on the success of last year, delivering on the investment it has received.

“Consistently, more than half of the engines produced in Britain are exported, so manufacturers will watch closely as Britain seeks agreement on both the rules and the cost of doing business with partners in the EU and globally.”